Well yesterday we had a really nice rally, but take in mind it was GM IPO day and still OPEX week, so lots of volatility. What I see now is, that the markets is make a nice clear HS pattern, where we are about to form right shoulder before a nasty move down, and that would take us to 1130 area.
I dont think we bottomed out yet and still think we have 1-2 weeks more downside left in markets, so no reason for me to cover shorts.
I did go long one stock KAZ, which I think is very cheap and a nice breakout chart. They had some great news and KAZ is a very undervalued stock by fundamentals. Target 1.5+ short term.
Overall by the indexes many of the is staying below their resistance from highs, many indexes already have backtested their broken trendline and its called the kiss of death, cause a big move to the downside should come after that kiss.
The dollar had a little pullback to support and I think the dollar is ready to rip higher near term.
So overall still long the dollar and short the markets. (Long KAZ but have a watch on CRBC too, small bank CACB went up huge...CRBC looks ready but risky play)
Have a nice day and enjoy the weekend!
Sqwii, what do you think happened to VIX yesterday, should it be considered as an island reversal?
ReplyDeleteAre you coming back to the Lion board?
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ReplyDeleteTo be honest with you, you've been delusional for the last 3 months believing in this gloom & doom apocalypse greatest depression theory and predicting S&P 950 (by the end of October). Many of those gloom & doomers got pre occupied with their belief and completely ignored solid earnings, chart breakout and QEII. Average bull market is 4 years. It's likely that we got 2 more years of bull market with some minor pullbacks along the way. TZA will be below $10 by the time this bull market ends. Those doomers made this bull run explosive too. There'll be many good plays for day and swing trades from Lion board. Good luck if you keep holding bear ETFs and going short. You may be right. Who knows?
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