Should investors put money back into NASDAQ consolidation now? It seems that we have missed the boat? (October 22, 2001)

  If this is a true bull run, we will have many chances to enter positions. Contrary to what we hear on the television from mutual fund managers that are saying if you are not fully invested all the time you miss the first half or so of a 25% move in the index. If you are in index funds, that could very well be the case; problem is, if you were fully invested all the way down, you lost over 60% before that move back up. There are many entry points to quality stocks. Buying into them when they breakout on strong volume is the first entry point. Then the test (50% test the breakout), and then the moves up off of the 18 day MVA (you get 4 or so of these), and then the test back down to the 50 day MVA and the move off of that (occurs after the 4 or so bounces up the 18 day MVA). Then if it is a long bull run as we saw in the 1990's and in many other times throughout history, you have opportunities to buy those stocks on their next bases. Many stocks breakout and then form a flat base or ascending wedge; when they break from there the gains can be really exciting. So don't buy into the idea you have to buy at the low or you miss out; we prefer to let stocks earn our investment dollars by showing they can clear resistance in strong moves.

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