Good Stocks: The Ideal Time To Buy Is When The Masses Panic

Good Stocks

The ideal time to Buy Good Stocks

The perfect setup does not occur often and when it does one needs to embrace it with gusto regardless of the terrifying picture the experts and mass media outlets will go out of their way to paint.

 Ideal time to Buy Stocks is when the Masses are Panicking

Follow the blue arrows as that is what this narrative is based on:

The chart above is of the Dow. The best time to get in is when it is testing its 90SMA or trading slightly below it (as you can see this does not occur often) and when the MACD’s and RSIA are trading in the extreme to insanely oversold ranges as indicated in the above charts.  The Trend should be positive and as an added bonus the masses should be nervous, and that’s what took place in Nov of 2015 and early in 2016.

While this is the best time to buy a good stock, there are opportune moments in between otherwise we would not have found plays such as VIPS, EDUC, CRON, etc. that yielded gains as high as 110%.

Other Factors to Keep In Mind Before Getting Into Good Stocks

The best plan when it comes to investing is to keep it simple but have the discipline to stick to something that works regardless of the time factor; patience is a virtue that pays very well.   One of the best time to buy stocks is when the masses are panicking; case and point, when the stock is crashing.  When the stock market is crashing you will see the above pattern more often and you will see this pattern in manifest itself in some of the top names.

Therefore when the markets start to crash and the experts start to preach their sermons of doom, instead of joining the crowd and heading for the next cliff, start looking for top candidates. Ideally,  one should have created a list of stocks one would love to own well in advance of any market correction. The early bird gets the worm the late bird gets the bullet.

The best time to buy Good Stocks according to Investopedia

First thing in the morning, market volumes and prices can go wild. The opening hours represent the window in which the market factors in all of the news releases since the previous closing bell, which contributes to price volatility. A skilled trader may be able to recognize the appropriate patterns and make a quick profit, but a less skilled trader could suffer serious losses as a result. So if you’re a novice, you may want to avoid trading during these volatile hours – or at least, within the first hour.

However, for seasoned day traders, that first 15 minutes following the opening bell is prime time, usually offering some of the biggest trades of the day on the initial trends. The whole 9:30 to 10:30 AM period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time (a great and efficient combination). Extend it out to 11:30 AM EST if you want another hour of trading. A lot of professional day traders stop trading around then, as that is when volatility and volume tend to taper off. Once that happens, trades take longer and moves are smaller with less volume. Full Story

When The Blood Flows that’s the best time to buy stocks (March 2020)

Huge amounts of liquidity are already being added to this market, but you have seen nothing yet. Helicopter money is about to become a reality and regardless of the mantra it is different this time, nobody can fight a fed that is determined to unleash the mother of bailout packages

It appears that markets are experiencing the “backbreaking correction” one which every bull market experiences at least once and is often mistaken for the end of the bull.  In today’s manipulated markets, one cannot tell which correction will morph into the backbreaking correction, as free-market forces have almost been eliminated from today’s markets.  While it feels like the end of the world, such corrections always end with a massive reversal.  Given the current overreaction to the coronavirus, there is now a 70% probability that when the Dow bottoms and reverses course; it could tack on 2200 to 3600 points within ten days. Interim update March 9, 2020

Based on our indicators the markets were expected to let out some steam, but mass hysteria turned a normal correction into a bloodbath in the short term timelines and a generational buying opportunity when viewed from a long term perspective.

Typically, the markets would pullback sharply then tread water until our indicators moved into the extremely oversold ranges. If the sentiment is still trading in the maddens zone when our technical indicators hit the extremely oversold ranges, there is a 90% chance; it will trigger the father of all buy signals.

When the Masses panic all is well

The crowd is panicking so use all pullbacks to add to your positions.

There is one massive indicator validating the outlook that this current makes for a great opportunity. It’s insider activity, and the readings on this indicator are off the charts.

Insiders have been using this massive pullback to purchase shares, and one way to measure the intensity of their buying is to check the sell to buy ratio. Any reading  2.00 is considered normal, and below 0.90 is considered as exceptionally bullish. So what do you think the current ratio is; well, it’s at a mind-numbing 0.35, which means these guys are backing up the truck and purchasing shares.

So what are the readings today? Based on very heavy transaction volume, Vickers’ benchmark NYSE/ASE One-Week Sell/Buy Ratio is 0.33, and the Total one-week reading is 0.35. Insiders are not just buying shares, they are devouring shares. Insiders behaved in a similar fashion in late-December 2018, after stocks crashed on Christmas Eve; in early 2016, when stocks also corrected; and in late 2008/early 2009, at the depths of the Great Recession correction. Those were spectacular times to buy stocks. Insiders seem to be telling us that today offers a similar opportunity.


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