The big sell offs are over.......look at the performance of the...

The big sell offs are over.......look at the performance of the SP against XJO over 3m & 6m.....and also look at the volume on down days / weeks / months.....it's progressively falling off .... & that's not a sign of distribution. Anyway we'll see as it plays out.

Btw here's the 2nd lesson:

Buy Dullness

Stocks emerging from bases make the best long-term investment candidates. Stocks that have been in prolonged bases often appear to be characterized by dullness.

Why should buying into stocks emerging from bases be the best way to pick stocks? Speculation is, more often than not, driven by excitement. Stocks that are moving back and forth, in a dull trading range, are of little interest to speculators. These stocks are boring and their owners are bored, as well.

A base that forms after a major long-term decline is really a reflection of the slow process of the acceptance of investment losses by those investors who rode the stock down. This process is often drawn out in terms of time. If the speculators aren’t buying and the sellers are investors taking losses, then who are the buyers?

The buyers appear to be long-term, value-oriented investors. They recognize the stock’s value and are willing to accept a dull performance until that value will be recognized by others. The buyers appear to represent long-term accumulators of the stock. The essential difference between the buyers and sellers, in a stock that is moving sideways in a base, is their respective time horizons.

The previous bulls in the stock have been proven wrong and the recognition of their error is being forced upon them by the current dullness in the stock. They are being motivated by what’s happening to the price right now. They usually throw in the towel with a comment like “ this dog will never come back.” Brokers often use year-end, tax loss selling to get a customer out of a dull stock.

The magnitude of the prior price drop will determine how long the basing period will last. Major declines require a long period of time for the accumulation process to complete. The current buyer has a longer time horizon and does not expect the stock to do much in the near term. He is looking beyond the current dullness to a more distant time when the financial performance of the stock can be expected to improve. In many ways, the dullness of the stock is actually proof that long-term investors are accumulating the stock.
Keep smiling.