Market view

Markets did a nice plunge as mostly called after the big rally we got to near 1288-1294 area. I stated that if we would not take out 1294 - then there is a good possibility we see news lows before making a real bottom.

Either way as I stated yesterday , I would be buying and I did load a size position on TNA 68.8$ for a swing trade from here.

The downside is imho very minimal here and upside is huge at the moment - too many bears right now and I dont think we are heading way more down. How about a market bottom on the day were they were showing 24- hour live from Greece fighting each other ? Good for some fear - well it was and volume were also good, usually marking a capitulation.

Remember - I went short markets 1st June around 1330 and were holding all the way down to 1270 some days ago and took profits. Now lots of people think the sky is falling and doom and gloom - right now is the time where I am a happy buyer.

Overall we have lots of good support below MA(200) and other big trendlines which should show some support, I see a possible backtest of broken trendline which we broke out of but then got slammed down to make a possible backtest.

Remember the chart yesterday about the euro I posted ? - I said that the euro made a topping HS pattern which looked ugly and a big flush in euro should come - we saw euro down -1.5% yesterday pretty big , with that markets got lower.

No one can be 100% sure about market bottoms and tops - but I think we have a very good possibility of a market bottom now - also with fear been rising a lot above upper BB. If we close below today in VIX - then we have a equity buy signal. Last week I also said - that I would see a nice move down with the "fear" rising , then to see a bottom. We had the VIX above 20 yesterday and fear is rising a lot - I think a short term market bottom is VERY close , if not in. We might gap down to 1260 or around here, but downside very limited now.

If we look at FTSE , we are near a huge support zone indicated on chart too.....

I waited out to buy a big size position in TNA when both 30min and 60min began to be oversold which it was at 68.8$ so I favour at least a "bounce" from here - either way downside should be very limited now.

If you look at Russels or small caps - they did NOT make a lower low - like other indexes , which is very bullish signal to me. Russels leading markets both UP and DOWN.... and if they are holding strong - I see it as a big bullish signal. If we look at CPCE we have the "wall of worry" which has been quite good to predict market bottoms and tops......lets take a look where we are now :-). Its not 100% right nothing is , but right now its saying a market bottom - and actually a possible big rally to new highs comming ? Who knows.... I dont think so , but open to everything what markets tells us.


I see a possible backtest rally to 1320 area and TNA possible 80+ target comming over next weeks - I think we are making some kind of market bottom now and a relief rally would come. I really dont think we will make new highs , but a relief rally to upside is due now.

I'm also long lots of small cap names included APWR from 2.1 which is way higher yesterday and looking for more gains. MCOX, SMSI , TA, CWTR also long

Have a nice day