Well as expected last days we made a major top and for now looks like we are still in a topping process. I need to remind you that in a TOP and in a BOTTOM markets ALWAYS is very VOLATILE.....We have seen the markets very volatile up and down last days which indicates for me this is a top in this area and why I am heavy short markets from Friday and monday. FED have NO more bullets left to help this markets and the dollar continues to rally. I'm long dollar since friday and think its about to rally big today. I think markets going to have a FAT RED day today, august 11. cause on all my bear ETF's we are going to have a positive bullish MACD cross (DRV, EDZ, TZA, FAZ) and that usually means 10% pop in those ones. So today could be a -3% today and I think we will break down of the rising wedge. I think this leg down will be a NASTY leg which should be more ugly than the leg down from april high to july low. We could easy get a "flash crash II" which could last for days instead of only 1 day and I think we have a good shot for moving below 1000 SPX soon and in the 800-1000 level which is my target for now. I wont buy ANY dips but there will be a lot of people here who will buy all the dips, but will bail out on all the gap downs overnight.
Stochastics , MACD and RSI in the BEAR ETF's giving buy signal today , Nikkei down 3% , euro down and we have some economic numbers which is trade balance today which should be UGLY for markets too. All in all like I said before, dont try to pick "winners in a bad market" you will get raped and loose. I'm short and staying short here.
Good luck to all ! Hope you enjoy my blog !
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