Special Report: Still Buying That Dip? (PREMIUM-UNLOCKED)

The following post was originally issued to TLS members mid-day on 12/3/2019.

 

Investors have been conditioned to buy every stock market dip in recent years; but is it still a wise strategy?

As you know, when it comes to the stock market, we have been in the buy the dip, i.e., BTD, mode for most of the year. This isn’t exactly a revelation as investors have been conditioned to do the same after a 10-year bull market. But as stocks hit some turbulence the past few days, it’s time to consider the question again — is “BTD” still a sound strategy? The short answer is yes. The longer answer is — it depends what is dipping and to what levels.

Given that primer, here is what we are buying today — or looking to buy — and at what levels. Keep in mind that all of the following tickers have been covered in the Daily Strategy Sessions, including this AM in the pre-market. So for the most up-to-date, real-time developments in our investment strategy, stay tuned to the DSS post.

XLK: 84.22, 81.50

SMH: 126.63, 122.65

XSD: 94.10, 91

SOX Semiconductor Index (not investable, just for reference)1648, 1595

QQQ: 200.36, 197, 191.20

Nasdaq 100 Index (not investable, just for reference): 8210, 8069, 7840

SPY: 308.25, 305, 300, 296

S&P 500 Index (not investable, just for reference)3084, 3035, 2964

IVE: 123, 120

HEDJ: 68.40, 67.20, 66.60

EWT: 39.10, 38.10, 36.60

XLV: 97, 95.40, 92.50

IHI: 251, 243

XLP: 61.10, 60.60

PKW: 65.55, 63.50

SDY: 104.20, 101.50

RWR: 100.80-101.20

IYR: 89-90

XLU: 60.90

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Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.