In my last update I recommended keeping a cool head and continue investing in undervalued stocks because this is when the most money is made in the stock market.
Those that followed this logic have made tens or even hundreds of thousands of dollars within a few days. I have come out with a nice gain as well.
As expected, the market has rebounded upwards over the past few days and is now trending closer to its median P/E valuation.
What does this mean? Well, although the market can never be predicted with 100% certainty, in my opinion we are due for a temporary drop in the next few days. Not only because it is trending closer to its median value, but a significant movement in one direction (this time up) usually means a temporary reversal afterwards.
I am personally planning on selling the positions I purchased over the past few days for a very nice gain, and will buy back in on the flip side.
Invest wisely and become rich from others’ irrational greed and fear.