NEW YORK ( Fabian Capital Management) -- Over the last 12 months the winning trade has been to buy any 3%-4% dip in stocks and ride the tide higher.Every modest pullback has been met with positive reinforcement from the Federal Reserve, better-than-expected economic data or upbeat corporate earnings news. When you examine the chart of the SPDR S&P 500 ETF (SPY) below, the 50-day moving average (smooth blue line) has clearly been an excellent line of support for nearly every pullback this year.
Be Wary About Buying Dips in Stocks
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