The stock market is busted. You don’t need me to tell you that.
Please review Three Rules For Bear Markets. Rule 1 is Everyone Loses. You’re either losing money today, have lost money for years or will lose money tomorrow. You are not a special snowflake immune to portfolio meltdowns. Bear Market Rules apply to everyone.
Support for the S&P 500 remains 1850 on the close. Below that we’ve got the 2014 Ebola Low at 1820 and the Reversal of 1812 from January 20th. I wouldn’t pin too much hope on those latter levels. All bets are off in Gacy’s Basement
Facebook shares were under $95 the day they reported earnings. Said earnings were absurdly good. The stock gapped higher the next day, eventually topping $117. As of this morning Facebook shares were back under $100. For my money, that’s close enough to Filling the Gap on the chart to make me interested on the long side.
Interested as in “Adding to existing long” not “back up the truck”.
This isn’t advice because I have no idea what your portfolio looks like. If you’ve had cash on hand waiting for dip, well, this is a dip. Facebook filling the gap is textbook. Bull markets are about playing percentages, not swinging for the fences. FB under $100 with a stop at the pre-earnings lows seems like a decent spot to dip a toe into this eddy of pain.
If you enjoy the content at iBankCoin, please follow us on Twitter