... And Now You Are Waiting for Another Pullback, Again!

Jordan Kimmel |

stock market correction, stock market recovery, stock market pullback, bargain stocks, undervalued stocks, best stocks to buy

Clearly, this last sell-off and quick reversal has caught most investors/traders off guard. I tried hard to get everybody ready for a quick sell-off, but the V-shaped recovery has most investors confused and now waiting again for another pullback. I received calls from investors yesterday saying they missed their “wishlist prices,” complaining the prices did not stay there long enough. All I could do was smile. We are now in the best nine-month period of the well-documented Presidential Cycle in which the market advances 88% of the time! Those are some good odds! And after this sell-off you are waiting for another pullback. That is what I call chasing the tail.



Let’s face it, each pullback is scary. Reasons show up suggesting “this time is different!” The reality is that the scarier the news, the more effective the shakeout works. If Ebola wasn’t scary enough for you, what is? The inability of investors to buy when fear is running high is what keeps them from making money. Buying healthy pullbacks works well in most markets, buying “the breakouts” only works in the strongest markets.

Most technicians and bearish traders will now be looking for a lower top and will start screaming this was a dead cat bounce in a cyclical bear market. I expect any pause in the new upswing will be just that, and the markets will continue to improve and we are off again to new highs.

I’ll just continue to leave my offense on the field and use stop losses and trailing stop losses. Many Magnet® holdings look great here. I am always trying to look around corners to see risk while managing portfolios. Right now I am glad to have had the opportunity to add to great positions on the last pullback.

Longs: Akorn, Inc. (AKRX), VASCO Data Security International Inc. (VDSI), Federated National Holding Company (FNHC), Ellie Mae, Inc. (ELLI), Douglas Dynamics, Inc. (PLOW)

Shorts: Chico's FAS Inc. (CHS), BroadSoft, Inc. (BSFT), ViaSat Inc. (VSAT)

By Jordan Kimmel, Chief Investment Officer at Investview, Inc. (INVU)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
ELLI Ellie Mae Inc. 83.84 -0.04 -0.05 465,265
BSFT BroadSoft Inc. 41.25 -0.90 -2.14 297,073
CHS Chico\'s FAS Inc. 13.21 0.17 1.30 1,660,006
AKRX Akorn Inc. 20.52 -0.09 -0.44 997,249
VSAT ViaSat Inc. 64.90 0.21 0.32 170,483
VDSI VASCO Data Security International Inc. 14.95 0.15 1.01 180,555
FNHC Federated National Holding Company 19.86 0.51 2.64 59,801
PLOW Douglas Dynamics Inc. 32.05 0.30 0.94 92,996

Comments

Emerging Growth

Breathtec BioMedical Inc.

Breathtec Biomedical Inc is a medical diagnostics company. It is engaged in developing & commercializing breath analysis devices for the early detection of infections & life threatening diseases including cancers,…

Private Markets

D-Wave

D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…