This is one of those rare occasions where we have a very short correction with a quick recovery and follow through.
The S&P 500 marked a follow-through day Wednesday after the Fed raised interest rates by a quarter point, the first increase since June 2006. The S&P 500 and Nasdaq rallied 1.5%. The Dow rose 1.3% and the IBD 50 added 1.1%.
Market breadth was solid, with advancing stocks beating decliners by 9 to 2 on the NYSE. On the Nasdaq, winners topped losers by nearly 3 to 1. The S&P 500’s bullish action confirmed a new market uptrend on the third day of its rally attempt. Volume on the NYSE rose from Tuesday’s level. Nasdaq volume fell slightly. Volume was tracking well below Tuesday’s levels ahead of the Fed’s decision at 2 p.m. ET but picked up the pace later. Market precedent shows it’s best to look for a follow-through day on the fourth day or later of a rally attempt. Wednesday’s follow-through was a rare one, occurring on the third straight bullish session in a row. On Monday, the S&P 500 reversed higher in heavy volume after early weakness. It gapped up Tuesday in above-average volume and soared again in higher volume Wednesday. The market is back in a confirmed uptrend which gives investors the green light to start buying shares, at least moderately
Probabilities are that a correction lasts a decent amount of time and had a decent % correction, but sometimes the market draws an inside straight and you lose. I have not regrets about cashing out my “breakout bucket” and contrary to that I did nibble on some 1YPEGs that last couple of days. I follow the thesis for each bucket of funds and don’t worry if they conflict.
Not many people on this board ONLY invest on the 1YPEG thesis. In fact, only one person may do that
He was talking of me Tamhas. I made a mistake of telling Puddin that 1ypeg was the end all of investing.
No, I was talking of Saul tongue-in-cheek. I was not sure anyone else used 1YPEG so strictly. A lot of people own a set of these but also talk about other stocks they are diversified in like maybe dividends, or Rule Breakers or high RS.
I am taking a liking to 1YPEG but am slowly migrating to it and it would take me years to gain the confidence to be 100% in that camp. Saul is quick to point out that he does not look at one factor, but does use 1YPEG as a key filter to go with other fundamental metrics.
I certainly did not intend to disparage anyone and perhaps should have used some smiley, winky faces.
If I did I apologize, but I don’t know how. I really respect your work and you have been on my “favorite fool” list since I joined this board.
I certainly don’t remember you telling me that 1ypeg was the end all of investing .
I see I did use a smiley face, so I guess that was not a sufficient clue I as not trying to attack a person or investing approach. Look, I am an engineer, and by nature slightly autistic, though not nearly as much as Sheldon from The Big Bang Theory. I don’t read between lines very well and I certainly don’t try to write between the lines. If you interpreted a personal attack somewhere, then again I am very sorry. You an Saul and Neil and Kevin and other are really great. I hope to get halfway there someday.
If I did I apologize, but I don’t know how. I really respect your work and you have been on my “favorite fool” list since I joined this board.
Pete, that " Ahh you did was an acknowledgment of your smiley face." I knew you were joking, so was I. Please do not take anything I have said as an insult or that I am attacking you. I really was joking with you on this.
Andy
Who really does appreciate all of Pete’s posts so how did we get here?
