Finding That Bottom & Why I Bought GOOGL Today

Every once in a while preparation meets luck and magic happens. Yesterday afternoon I tweeted this to my subscribers 

This morning per my thoughts above I was patient and waited to see if we flushed. I know I could have been wrong, but easier to be wrong while waiting patiently on the sidelines instead of buying out of fear of missing out (FOMC). Almost exactly at the bottom (somewhere around SPY 192.50 – was so close!) I bought SPY calls. I also bought GS and GOOGL calls this morning. The SPY and GS trades are self explanatory if you know I was looking for at least an interim bottom today.

Regarding GOOGL, I had been sooooo patiently waiting for weeks to swing GOOGL. The chart below shows what I was waiting for. I realize that one analogy regarding a stock trade can be construed as meaningless, but since it lined up so perfectly with the low we made this morning, the risk/reward seemed too great to pass. The good news is that you have plenty of time to get in if you like what you see below. 

Do we V-bottom now to new highs? I don’t know. I already took some of my short term profits, have stops in place and now can rest easy and trade what comes. For reference though, here is your updated V-shaped bottom stats.

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