.....those who like to pick bottoms need to be careful, as fund manager Elio D'amato used to say 'if you pick bottoms, you may get smelly fingers'.
.....there are reasons why stocks are at their bottom, which can entice market participants hoping to get value, 'value that they can see and the market is blind towards', maybe but unlikely.
....this thread has cautioned weeks ago to avoid resource stocks, because the down cycle is not over, China is not out of the woods, refusing to do a bazooka stimulus which can help resuscitate the sector and US recession is possibly months away (within 12 months), if we can't be patient enough to wait until the down cycle is over and we get green shoots, then the prospect of more pain after a huge shellacking is not out of the question. It is because we follow the day to day movement of the stock and get encouraged by any short term upticks that emboldens us to enter for fear of missing out. A stock which has halved from the peak could easily correct to the upside by 10-20% before falling back another 30-50% again.
