Market view

What a fantastic day , if you were shorting markets ! I still believe as called that 13th july was a major top in markets and we are heading WAY down now. As I told you, we have some bearish candlesticks on daily chart suggesting trend is reversing , and Friday we got a confirmation with close below 1080, suggesting you to load the boat with shorts if you dont have. Markets down near -3% just in 1 day and I believe next week we are heading lower. A like scenario is that the dollar looks like it has bottomed for the short term and with dollar moving higher I can easy see the markets move further down. The inverse HS pattern in FAZ and TZA played out very well with break of neckline suggesting a big breakout in these inverse ETF's and we got it. They were up over 10% just in 1 day, thats more money than avg investors make a year! Today the bearish divergences we saw lately played out very well and as I have been telling you before that the upside was VERY limited and my target for the counter trend rally should be maximum 1100, just a half point from that level. I am still holding ALL my FAZ as I believe the markets could easy see below 1000 in SPX end of this month !! But what I see on the 15 min chart of SPX is that the markets making a bullish falling wedge and that we have a possibility to breakout of this and move to the MA(50) or horizontal resistance (1080 SPX - which actet as support before). So if this plays out, another opportunity to load up with shorts. So outlook for monday is a little bit bullish as we could have a little rally and then fall back rest of week, but again I am very bearish and holding for the swing down, which I believe we are heading down under 1000.

Hope I warned a lot of people to get out before the markets stalled and hope you made good profits on the tankage. I just love when you can play both sites of the markets and the good traders are the ones who can make money in both a bull and bear market. I wanna point out I already started to build some shorts at the 1055 level, but how to play this out is to AVERAGE on the way up, so load a little bit shorts on the fast rally and then add up. The same reason I use if markets tanking then begin unloading those shares a little bit after each other until we get a confirmation that the trend has reversed. I like to use the trio MA's for buy and sell signals. But have a nice weekend and lets ride this markets down over next weeks ! Hope you still enjoy reading my blog !