Market view

Market did a very sweet rally for the bulls and gave all bulls hope again that we are going to test new highs. I still believe that this move is in a particular downtrend and we will make a "lower high" than the previous highs....

If you look at the dollar - yesterdays move was not cause of the dollar weakness - actually the dollar is looking stronger and stronger here as it comes down to the monthly support at 76.3 or so to be precise... so there is a possibility imo that we get a small wash out , but we should NOT see below 76 in the dollar IMO,.. so watch the dollar carefully.

I still believe the dollar is about to head up to 87ish comming months..

Markets came above 1320 and now people asking me if I got long - well I didn not get long , but I'm still playing stocks on the long side ( follow on twitter and I will post picks) - but I am still major short at 1333-1330 so I am quite break even here. Today should tell the story - I believe everyone is expecting so good numbers today , which leads me to be careful , as expecations are quite high.

I still believe SPX will see below 1200 this month - so if thats right , beginning to load the boat with shorts here should be great and you should be making a lot of money loading in this area.

My plan would be to add shorts in this area , and then have a tight stop loss ( if markets breaks above 1335 - take the small loss and move on )

But overall looking for the dollar to be bottoming here at the MONTHLY trendline - and when it does it should bounce up big on this one , and stocks should fall hard with the dollar moving higher.

Latest news today : http://www.bloomberg.com/news/2011-03-04/fed-policy-makers-signal-abrupt-end-to-bond-purchases-in-june.html

"

Fed Policy Makers Signal Abrupt End to Bond Purchases in June"

If that is right or just rumours - well then the dollar could do a major move up and markets could fall hard - cause everyone knows that POMO is the one holding markets up.
Good luck to all