Market view

Well , markets been mostly flat today - we had a gap up, then consolidated for the whole day (sideways) and then had a move back up into close. I sold most of my long positions today , and today was a perfect day for small caps(Usually small caps is the one which is running when markets flat/neutral). I made big profits in FBP and ROIAK lately, been big winners. But currently the markets got too fast up and I wax expecting the markets to rally since 1 week ago and we got a very nice and fast rally up. Actually I took some shorts today when SPX was near 1071 cause I knew that it was the 50% fibonacci retracement. The upside short term is VERY limited imo and I dont think we are able to go much higher. IF and only IF markets gaps up and gets near 1090 and FAZ gets near 14.5 I am going to sell all my longs no matter what and load the boat with shorts and stay cash for rest as the markets will suck all bulls into and reverse fast. But my count is still that we will get a pullback to around the 1040-1050 area and IF this pullback holds , then we might get another explosive rally to 1090 area. But either way if you bought shorts today you should be quite safe for the next months ahead. I still belive we are in a current bear market and we could easy test march lows near start of next year (2011). So what I am expecting at the moment is a pullback and then another explosive rally - if we dont get that rally(then I'm still happy, cause I have my shorts from this level) , the upside is very limited and will give a maximum target for indexes to go above 1100.

Have a nice day