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Buy at Dips or Stay Away from Stock Market?

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Buy at Dips?

On August 2,2016 Ben Reynolds at thestreet.com wrote: “Buy the Dips: 3 of the Best Dividend Stocks Just Went On Sale” They are KO, XOM, and MCD.

Are they good stocks to buy right now? You might wonder if there is an objective measurement that can tell. Yes, AbleTrend. Here are the charts of the above 3 stocks with AbleTrend, an objective market measurement.

KO_W_20160804_email_SJ

For KO, it shows red dot and red bar therefore it’s not good time to buy yet.

XOM_W_20160804_email_SJ

For XOM price went below the weekly support (the small blue dots indicating the market support levels) therefore buy position exited on July 24.

MCD_W_20160804_email_SJ

For MCD price went down to hit the support level and therefore exit on June 19. It’s not the good time to buy this stock yet.

Stay Away from Stock Market?

The same day, August 2, Victor Reklaitis at Market Watch revealed: Goldman Sachs says stay away from stocks for the next three months. Goldman Sachs is a reputable investment company therefore it should be a fine idea to take the warning seriously. But on the other hand following the crowd will often lead to losing opportunities without knowing. Many times traders and investors make most of the profits with the ostensibly risky positions. Is there an objective measurement that can tell? Yes, AbleTrend.   Here are some of the stocks that you could hold on with managed risk.

AMZN_W_20160424_Setup-1

AMZN_W_20160424_Outcome

If you were hold the current buy position, the protective stop should be moved to 688.70 (the small blue dot below the 7/17 bar) to secure some profit while risking the position in the market. It’s a wonderful feeling to take the risk on the markets money. Here is another example:

T_W_20160424_Setup

T_W_20160424_Outcome

Click here to view more stock Setups and Outcomes charts

AbleTrend is a principle based trading software which received Reader’s Choice Award from S&C magazine for more than 19 years. Summer is the perfect time to get prepared for the huge opportunities in today’s chaotic global market. AbleTrend is designed for investors and traders to take advantages of volatile market. If you’re not using AbleTrend already, you can use promo code: BL16 to order AbleTrend 7.0 30-day trial for $149 instead of $199. This promotion code ends August 31.

With Warm Regards,

Grace Wang

AbleSys Corp.

gracezh@ablesys.com

 

 


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