“An obstacle is often a stepping stone.” Prescott
If breakouts or breakdowns do not work then chances are we go the other way and we saw many breakdowns fail today so I did buy a few in medium size like SPDR S&P 500 (N:SPY), Amazon.com Inc (O:AMZN) and Alphabet Inc (O:GOOGL) and I also tried Priceline.com Incorporated (O:PCLN) but stopped out just under cost since it was acting a bit strange and that one can gap huge so I didn’t want to risk it.
I’m still very cautious but we need a bounce and we’ve got the surest sign of it being here for real now and I’ll talk about that, being iShares 20+ Year Treasury Bond (N:TLT), later on in tonights full letter.
So, while the bounce does finally look to be here, and real I have to watch closely and make sure we don’t see the strength sold into as we have seen, or I’ll be back to cash quickly.
The damage is very severe to the charts so there will likely be more downside at some point which will take us to new lows but this is just speculation, I have to see what the charts build and it will tell me everything I need to know to make 2016 a success.
A good strong bounce for SPY here but we need to close above todays close at 185.65 for this bounce to get going.
Resistance above is 187.50 then 190 and then 192.50 then 195 so let’s just see if this attempt at a bounce can beat out the sellers or not.
I’m medium size in my positions and ready to exit if need be, or if this bounce continues I may add or try a few other stocks.
All I can do it keep losses small and let winners run.
I bought 10% into SPY at 185.77 and I’ll look to cost and perhaps 185.23 as stop levels now.