Market view

Blogger has been down for the whole day yesterday - so I could not make an update.

Here comes the weekend update !

Overall markets is still in sideways/down correction from 1370 and I still believe we are going to see a massive rally soon. I've bought the dip this Friday at 1336 as I believe this was a must before we should do a nice rally. The things I like is that over the past 2 weeks we got some more fear into markets - but overall the markets has been held up nicely and consolidated.

As I told people late April - I was expecting a pullback in first half of May - so now we are here after 1370 we have seen a nice pullback - and very choppy action up and down. I still stand by we are going to see a rally in the second half of May and reach new highs in the mkts - my objective target is 1380 - but if the inverse HS pattern is going to play out we should see 1420-1430.... which I feel very unconfortable with - but who knows.... might be a last monster rally before they pull the plug - we have still POMO schedule going on until June....

For some reasons my charting program does not work - so I have a chart this time from Trading Markets - which indicates where we are right now...

If we take a look at the SPY and the DOW JONES - we are RIGHT at the trendline from 1250 lows - april lows and now here.......

The question remains - do we bounce from here and get another rally or do we have a major breakdown next week - as you can see there are 2 possibilities and a major move up or down should come next week.... I stand by we rally , but thats just my oppinion here - no one is right every time..

Well as I have been saying - I'm still long TNA 82.7 and added few yesterday - as long SPX stays above 1325 - mkts are HEALTHY and new highs is to be expected - if we breakdown below this level on Monday - yes then we are probably going for a bigger correction. But my analysis tells me - that we should begin to rally to new highs from here very soon - and this level is a perfect SPOT to rally from......imho.

So I remain long SPX 1330 area again after the pullback we got and TNA 82.7 and lets see what happends next week. Objective target is 1380 now - and may be raised higher depends on how strong this markets rally.

I called the dollar bottom and since then we had a nice rally - I expect the dollar to pullback from here at least - but the weekly chart looks great on the dollar... so thats why there IS a possibility it keeps rallying , but looks like it needs a breather.

So HOW DO YOU PLAY THE MARKETS ?

I would stay long here - buy the dips - also if we gap down to 1330 Monday - but will stop out if we get below 1325 with heavy volume - but there is a good possibility we could gap down and then run on monday too - until then your reward could be huge if you stay long and we start rally soon. If Elliott Wave means anything - then we should see the last impulsive rally starting soon to make the last high before we are going down a lot more....

Have a nice weekend and enjoy - if you wanna play some small caps follow me on twitter - I've had amazing winners like - OXGN , ABIO , DSCO , VRML , which has been up more than 50% all of them lately.

I've added GMXR and GMR this week for long term account as I think those 2 plays are serious undervalued and a great reward will come. (Chart GMXR good play now inverse HS pattern - should rally big from here )