Since mid April I have only mentioned companies to buy once and that was on the recent follow through day that failed. It is not prudent to buy stocks when the stock market is in a down trend since 90% of all stocks will fall during this period. I see great companies with fantastic earnings start falling in a down market so do not try and swim against the tide, be patient and wait for the market to turn. You want the wind at your back and not at your face.
It is very hard not to buy a company that you think is a great investment, even in a down market. Do not be tempted to buy, it is much better to hold off and keep maintaining your list of companies that are fighting against the downtrend and holding close to their recent highs. These are the companies that will take off first when the market turns back up.
If you still have a temptation to buy a great company in a down market, then just look at what happened to these great companies in the down market we are in right now which is not yet over. Companies such as HAWK, FORM, COCO, CAGC, AKS, APC, CF, PCF, MON, NVDA and PWRD to name just a very small sample have all been decimated.
If the market turns back up do not buy any of these companies since they all fell big time. Like I said we want to buy the stronger companies that resisted the fall.
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