Well well - today is going to be a very interesting day as I think we could have a terrible tuesday. I am still long TZA and still long the dollar and I think TZA is the one to be in short term. I made a chart and I can really see TZA break above huge resistance at 21 now and then a BIG move to the upside will come.(Most likely today)
The VIX chart also about to make the huge breakout above 21 (same number?? lol ). VIX weekly chart is coiled and ready to blast and the daily chart seems also ready to make the break.
The top we had here reminds me a lot of the top we had in 2007 and who knows? I really dont think we are going to make any new highs , but we will see much lower prices in the future. I think people who are shorting this markets now will be very rich in 1-2 years. But overall I must stick to my indicators and charts for the short term and at the moment they are telling me to short, short short. The most bearish reading according to put/call ratio is IWM = small caps. I got TZA cause thats 3 x BEAR IWM(Fantastic?) so TZA should make a huge move to the upside today.
The euro FXE flushed below MA(50) and will continue, weekly chart looks ugly still.
Well overall - look for a big move to the downside and keep your shorts tight with TZA and long dollar.
There will be a time to go long the markets and long the euro again - but time is not in yet.
Have a nice day
if today SPX is going to end in red I think it's safe to go short. According to my timing indicator we already have a weak "sell" signal on SPX and today is going to be confirmed.
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