We wrote this afternoon near the bottom:
“This would be a pretty spot to bounce – if bulls want it, this is the place to defend ”
And once again dip buyers won the day.
We find it astounding that no matter how ugly the market support keeps working, for a trade. If we want anything more than that then bulls will need to give the all important confirmation move tomorrow. This also applies to all the sweet hammers on the financial stocks today. Also recall that we tested the support last week in overnight session and we finally had regular session test that many had been waiting for today. Bottoms are never made in one day — confirmation is always needed.
As noted before we’re swing long partial $SPY. Why? We got off decent entry and have cushion, we like how market acted post low, we like copper holding, and we like the financial bounce off the lows. Stop now break-even (maximum, we’d probably bail at 130 break) at $SPY 129.66.
Even with all the red, there still is very little fear in this market (note $AAPL all time highs today — as an aside great trading there by our buddy @gtotoy )
Until we get smacked in the face our modus operandi will be to buy dips. It’s been working for 2 yrs, and we’ll keep doing it until/unless we break 2009 trend-line or we get hit. Whichever comes first.