stock in an uptrend, will retrace(dip), then trend up...will make you more money faster, than shorting the the highs(peaks). sure, can short the peaks, but why not short the peaks of stocks that are making lower highs?
If I read you correct you are saying this is a "dip" for retailing stocks, so buy. I don't agree, 90% of retailers are over priced and have been for some time, at best they are going to flatline for a while if not slide further, too early to be buying into this sector. Earnings are nowhere near their PEs
So in other words,is this the start of the overdue correction towards the long term mean valuation,or just normal healthy buying opportunity from a pull back.Both sides of the trade have valid reasons but suppose time will tell!
i agree, this is not the "buyable" dip, whatever system you use will first have to give you a signal before you can buy...if this is a correction, then one should be looking to go long WHEN the correction is over
remember that Rams is looking at it from a technical point of view, buying the dips and pyramiding on the way up is a technical trading strategy that doesnt look at fundamentals. It doesnt help argueing if you guys arent talking the same language.
Also note that prices and PEs can become and stay insane for a very long time (Shoprite and Naspers is case and point as a recent example)