Time to Buy
In Wednesday morning's better-late-than-never column, I cited the filling of the May 4 gap in the S&P 500 at 1391.57 as the best reason -- maybe the only reason -- that the market stalled at that level Monday morning, topping out at 1391.74, and then turned south. A few days later, the S&P 500 is 36 points lower. The Dow Jones Industrial Average has collapsed 350 points from Monday's high. The Russell 2000 has sold off to within a fraction of a point of last week's multi-week low.
I also noted that the top of the May 4 gap was the ideal spot to sell. I used the return to new multi-month highs in the S&P 500 to lighten up further in that sector. At that point, cut back to a maximum of 45% invested. But as the market erases all of last Friday's sharp pop, there are compelling opportunities on the long side again -- at least that's what it looks like from here....629 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.