And the dips are getting smaller and shorter.
Interactive Brokers strategist dishes on the evolution of dip-buying and the “flight to crap” [Sherwood] – “But speculation is far from dead. There’s so much reflexive dip-buying, and at times it works really well. The people who bought the dip Tuesday when Powell was speaking were certainly vindicated a couple hours later after market futures were ripping.
I’m noticing that the half-life of dips seems to be getting shorter. The reason for that, I will assert, is that everybody is so vigilant about buying dips that their framework for what constitutes a buyable dip keeps getting smaller.”