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Buy The Dip Continues

sp-500-today2

Well, we’ve returned to the pattern that has become very familiar to us over the past few months. Early day selloff as follow through to previous day down market, then the under-invested step in to buy the dip. You can see it in the first hour of trading – and if you went back to many, many previous trading sessions you would see the same thing.

I’ve said it many times before – this is the strongest rally I’ve ever been a part of, and as long as there are under-invested people that have not participated in the rally since March, cash will continue to flow into this market and push it higher.

At the present, its safest to move with the crowd than against it. It won’t last forever, but its good while it does.

(note: did you ever play the game with your friends where you tried to identify which character you were in Animal House? Three guesses who most of my friends said I was…)

Mark