Market view

ANOTHER red day - wow 5th day in a row - its really long time I have seen markets make 5 days red in a row , usually we have 5 days green in a row... but red... must be something really negative or reverse POMO going on..... :-)!

Markets started yesterday with a gap up and a little run into day end , but then near Bernankes speech markets really took a hard dip and closed RED for the 5th day in a row.

I dont think the correction is done and think we have some more downside before a major rally which I will play when I think its time, but for now still holding all my shorts both TZA (34.5) and ZSL (16.6) - looks like silver could really dip hard soon

Overall - markets is very oversold right now - we got a bounce yesterday and probably this was it ? I were hoping for a lot more for the bulls to make a bounce , but time will tell.

USUALLY a bottom is in , if markets GAPS down hard - then reverses and end up green and strong for the day... a bottom is not made by a "gap up" imho which we saw yesterday.

I'm still looking for 1250 over next 1 week from here , so it may be choppy up and down , or we might get a multi day rally - but overall short the rallies as we should test MA(200) near 1250.

We could easy see below 1280 today before the next " bounce" up today , and I still have a target of TZA 45 - inverted HS target. I have a SPX target of 1250 ( HS topping pattern ) - and Russels 740-750 HS topping pattern target.

Looking at europe - DAX in a pretty clear HS topping pattern too - looks like about to breakdown hard...so watch if DAX breaks below 7000... could get nasty


Remember I've told people already from 1st day of June that TZA could go to 45 when it was trading at 33 with charts and targets - no other places you get all these great information for FREE......


On the SPX chart I showed you where I called the recent bottoms and tops in markets - pretty accurate over the last 3-4 months , had a bad late 2010 , but no one makes 100% perfect calls.

Overall - enjoy the summer and sun and stay short right now imho.

Have a nice day