Market view

Woooow what a day yesterday.

If you followed me on twitter you would know that yesterday morning I took my profits in TNA from 78.3 to 88-87 level as we began to see the weakness I was talking about. With that in mind I bought TZA the opposite at 34-35 and now holding for a swing play.

I've got a sell signal on all indexes yesterday early morning - and that was the sign to tell me to sell everything I've got and I've also got a buy signal confirmed in VXX and VIX.

The only thing which is NOT confirmed yet is the dollar UUP , which I have not got any buy signals yet - and FXE euro is still on a buy signal here - but it looks like that can change fast if dollar keeps moving up.

I've also bought ZSL yesterday at 16.6 to short silver - where I think metals have another leg down until now - got a buy signal in ZSL on daily chart and it looks ready to go.

So most of the things I am looking at tells me markets is about to head down in a big way soon - as I charted 2 days ago the TZA chart inverted HS pattern - TZA stopped at 33$ and then had a BIG rally from there.

If this inverted HS indeed plays out (not sure) then we have a target of 45 area in TZA which is a lot higher from here - markets could really have a nice flush then..... so therefore I stay long TZA as the only thing right now from 34-35 area.

If we look at commodities DBC - we have a potential EXTREME bearish setup in place.

1. DBC backtested broken trendline and made the kiss of death pattern
2. DBC made a BEARISH ENGULFING on daily chart ( VERY bearish)
3. Potential topping HS pattern with right shoulder now in - the next move would be a flush below neckline at 28.3 and the target for pattern is 24.5 - thats a BIG nasty .
4. That would be inline with markets SPX dropping below 1.250 SPX and down to possible below 1200 for a correction

Ok, I was bullish 4 days ago - YES and markets DID move up - but if the MARKETS TELLS you otherwise - dont stay in your oppinion - JUST FOLLOW And READ the charts and they are right now telling that you should not be long - but short.

Overall if yesterdays down move was a fake to trap more bears - let it be the best short trap ever in 2011 - then I would get trapped , but for now I am holding my shots TZA 34-35 as what I see is a potential gap up today or little bounce before another major drop possible below 1300 this week.

VXX looks like about to breakout of big downtrend too here - which is extreme bullish.... chart posted.

Looking at some big names PCLN made a bearish harami candle and have a very possible topping HS pattern which targets 420 - thats a big nasty drop... so careful.

So time will tell - for now positioned for a very bearish move down - will tell people if I cover and go long again , but for now looks bearish to me.

As long SPX stays below 1330 now MA(50) then we are going to head down imho

Have a nice day