Oct 12, 2018 05:04 PM
The US equity markets dropped sharply this week, whether you are looking at the Dow, the S&P, the Russell or your IRA balance. Traders are prone to bottom picking, trying to buy things that are a lot cheaper than they were when bought just a couple days ago. The conventional advice to such traders is “don’t try to catch a falling knife”. That is indeed difficult to do on the pointy end, and is most easily accomplished on the handle end, i.e. still on the way down.