Market view

Well today I will just make a quick update after market close, will try to add some more charts and comments tomorrow.

As predicted yesterday TZA got a huge move to the upside with the dollar moving up too. I'm still very long TZA and the dollar.

When markets was 1228 I made a topic and called it a major top with 61.8% fib retracement, optimism extreme highs and every shorts I knew of began to cover. The USD flushed below support but regained quickly, thats a PERFECT signal for a blow off top. TZA was near 19.4 at that time, glad I got some of it.

Still holding major short positions and the put/call ratio readings telling me that the DOLLAR is EXTREME bullish and about to go higher near term with the markets especially China (FXI , extreme bearish and Semiconductors). So I expect the markets to move lower near term and most likely into end of November still.

The VIX broke out of a huge falling wedge which is a VERY bearish sign for markets and VERY bullish the markets telling me a big move to the downside is comming in markets and big move to upside in VIX. The same with the dollar, today was the FIRST DAY the dollar had above HUGE weekly downtrend line , but today we killed it and got above with volume ! The dollar had 2% bulls 2 weeks ago and so much fuel now to make the dollar run a lot higher. The Weekly chart FXE looks VERY bearish to me and I can easy see it go to 1.33 near term, maybe a little bounce from there but can also see it crush below sometimes next week. But all in all , lets take 1 day by 1 and see it from there. IF and only IF we get more upside here my target would most likely be 1194-1197 are to fill the gap we made, another good fib target is 1187 which is a pivot point and acting as resistance now.

I'm still short markets via TZA and long dollar overnight.

Adios!