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What Is A Pullback

Posted January 7th, 2008 by Cramerican
 
Read the full article: http://www.makemadmoneywork.com/2008/01/06/cramer-what-is-a-...
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We often here Cramer tell us to buy on a pullback. This poses the question, well what exactly constitutes a pullback? According to Cramer, a pullback is when a stock has fallen 8% - 10%.

This is, undoubtedly, the

On April 17th, 2008 der_meister99 says:

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Thanks for the support.

On April 19th, 2008 FTBRon says:

Thanks for the support.

http://thecuriousinvestor.com

On April 11th, 2008 thecuriousinvestor says:

http://thecuriousinvestor.com/2008/04/10/pullback-a-technical-perspectiv...

Oops... forgot the link!

I wrote a response to the

On April 11th, 2008 thecuriousinvestor says:

I wrote a response to the question "what is a pullback?" at my blog. Here's the link to what will be the first part of a several part series taking a look at "pullbacks" from a technical and fundamental perspective.

Added a followup post

On April 15th, 2008 thecuriousinvestor says:

Added a followup post http://thecuriousinvestor.com/2008/04/14/pullbacks-a-fundamental-perspec... on more fundamental based pullbacks and how to play those.

Buying dips is a strategy

On April 6th, 2008 thecuriousinvestor says:

Buying dips is a strategy that works very well in upwards trending markets. As Cramer believes that there's always a bull market, I guess its not surprising that he believes in this strategy. Unfortunately, it's also an impressive way to get shellacked when markets are in full bear mode as we've seen in the past few weeks. At some point, it's quite difficult to keep buying as the bottom falls out of your positions.

I couldn't agree more.

On April 9th, 2008 Guru says:

I couldn't agree more. Buying on the dips only works if there is any upwards momentum in the market or atleast the company you are buying into. However, in the long term, if the fundamentals haven't changed you could be rewarded for your patience and due diligence. When I say long term, I am talking Buffett style duration, not a strategy everyone can or should try to implement.

What are your thoughts on

On January 8th, 2008 FTBRon says:

What are your thoughts on the entire market. If you look, the S&P 500 and the DJIA have both fallen more than 10% in the last 52 weeks. Should we be looking at investing into the index as this is now classified as a pullback?

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