Today’s move in the S&P 500 looks more like a weak pullback to the lower trend line of the triangle. We might get new lows before the market can mount its first significant rally since this bear market started. There is no way to tell what will happen though. My approach is to stay mostly in cash and have small positions in what I perceive to be extremely strong stocks. Those are RGLD and TSYS. The risk here is I might get stopped out of TSYS before the market can move up significantly.
Here’s something I like about TSYS right now. Have a close look at the recent volume pattern with TSYS. You’ll notice the days where the stock is up volume is higher than on down days. That’s a sign for buying pressure. Strong stocks typically display that kind of behaviour.