Who starts the run? Do flippers, traders and momentum players decide to pile in first? They create a little upside, something positive comes out in the media and "value" investors start buying shares. Then we have a run. Or does the "value" crowd create the momentum and the traders follow?
I'm not sure it matters, but the process interests me.
Just as I argue that long-term investors should prudently sit out near-term gains in AAPL, I would hope that most also shy away from placing bets on dead cat bounces in DELL, RSH, BBY or RIMM. Certainly there's money to be made there; however, if you make it a habit of poking in the dark like that -- placing what amounts to a hollow, uninformed bet -- you're going to end up hurt sooner or later.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV