The best traders and investors are opportunists. They develop certain styles and then wait for opportunities that fit their parameters. The style may not only be quite different from each other but can be diametrically opposed.
In the current market, long-term 'value' buyers will be approaching things quite differently than short-term speculative traders. One approach may work better than the other on any given day but it is ridiculous to claim that one approach is inherently superior. What works best depends on the individuals and their skills at finding opportunities.
I bring this up because I see some traders mocking Warren Buffett and I see some Wall Street 'pros' mocking aggressive short term traders. These comments are a function of ego and emotion rather than any thoughtful consideration of what is going on in the market. Buffett isn't even playing the same game that traders are playing. He has a totally different view of the market than a trader like me who is trying to knock out a steady diet of daily profits. 'Value' is largely meaningless when you are focused on price movement.
What is particularly troubling about the Buffett comparison is when it is used as a way to try to justify a prediction of a market top. Buffett isn't a market timer, he is a 'value' buyer. He likely celebrates poor markets because there is a better chance that he will be able to put some of his giant cash holdings to work. If Buffett isn't buying it is because he doesn't see opportunities for his style. That doesn't mean that the market is going to collapse or that active traders can't find opportunities.
Buffett will always be celebrated as one of the greatest long-term investors ever but that has absolutely nothing to do with navigating this market if you are an aggressive trader.
Stocks have bounced back and the rotational action has cooled off after a chaotic morning. I'm continuing my hunt for the next opportunity.
