Market view

Markets did rally ANOTHER day very strong as widely expected last week and we are getting near 1300 level which I have been looking for. QQQ and Russels already a lot stronger than SPX - so if SPX will follow those - SPX going to break 1300 and move further up , which I think we probably will test 1320-1330 still sometimes this week..

But ONLY thing which worries me very short term - markets up huge lately without a pullback , 30 min and 60 min overbought a lot , so a pullback could be expected - but I would not try to play it as we can stay overbought and just rip higher above 1300 on Wednesday - but just wanna tell you that you should take in mind we are very overbought short term.

I bought the dip at 1264 on a gap down last week which worked out perfectly from right shoulder in a inverted HS pattern. Target on QQQ is 57+ and right now we are at 56... pretty close I must say.

SPX target is 1330 area on pattern IF we break 1300 near term.. so watch that level closely - SPX is right below big resistance area and as I said - if we follow Russels and QQQ we should break is shortly.

So what do I think right now?

Its end of month and I think we have window dressings going on + we have Independence day weekend , so by statistics its usually very bullish and I think they will try to end the week in big green , which they are doing well so far. I think there is a good possibility we just may rip higher into weekend or late this week. What I will be watching as I've said many times before is Russels versus SPX and QQQ. When markets gapped down last week people feared again that markets would go down - I bought the dip cause I also saw russel a lot stronger than overall indexes which is BULLISH....so when Russell is up only 0.3% one day and SPX is up near 1% - thats a time I think we are going to have a short term top as small caps is lagging to run higher. This shows me that we are about to turn around as I think small caps will lead us lower again.

I'm still holding all my TNA from 68.8 which is 78.88 in a size position. Again up 10$ PER SHARE with big profits here.... you could take the profits and run now I'm waiting out to see confirmation as I think it will go higher ! Last time we rode TZA up over 10$ per share and now opposite working out so well so far. Overall still bullish and looking for more upside this week. I dont think there is a lot of places and blogs where they actually POST their trades and stand by them - this is all for free and doing a lot of time doing this , so I hope you enjoy reading this blog. If you do I would at least ask if you can take time to do some reviews on possible investimonials or other sites - thank you :-)

But again as I am up near 10$ per share on my size position in TNA , if we get a push higher near term I will probably take some profits out and slowly scoop into TZA. I will be watching TZA right at trendline support at 34.5 to get a starter position which I think may be a good idea if it holds, so watch TZA 34.5 if we hit this line. If we do hit it and bounce hard from there a possibility I will take all profits from TNA which will be up more than 10$ per share then and then move some into TZA, but follow me on twitter to get live updates.

At last I wanna share a stock pick I think could do very well - I've mentioned it before and I still think its cheap , GMXR. If you look it looks quite good here at 4.3's I'm long here for a longer term hold for 1 year or so - if it breaks the downtrend from the highs when it was trading at 80$ it could run fast up to 10+ and above. The company has a lot of good things going on near future and 2nd half 2011. So I wont be surprised to see this one double or tripple in time... Just a good pick for your pension or longer term account imo , my favourite personally... Its made a long term base in 4-6$ over the last 6 months and after a long term base a breakout will make a good new trend up to above 10+ imo. Fair value is around 12+ imo , but you really need patience with 6-12 months imo.
Have a nice day