Market view

Markets did ANOTHER nice rally - and also with the very short term overbought levels , kept going higher and higher.

My TNA swing position from 68.8 closed near 80 and is up more than 10$ per share and if you follow me on twitter I booked 50% of the profits from 68.8$ -> 80$ in TNA as I think we are getting very close to a short term top as I've called.

Remember I got long calling for a rally to MA(50) at 1320-1330 (at the time when we were trading at 1260) , but as the days has come by - the MA(50) sits at 1316 level.

Honestly I think we could test this level at 1316 today and if we really want the last big rally on the LAST POMO day (Thursday - no more POMO after this.....) then we could make the backtest of 1320-1330 still.

All in all - my plan if we run higher on Thursday is to book the profits in TNA from 68.8 and hopefully take them near 80-82 area.

Yesterday I got a starter position in TZA (very small one) at 35.55 - this is the first little position I started buying - but I will be adding with SIZE position to this probably if we reach 34-35 level for a swing play sometimes on Thursday. Remember to follow me on twitter again if you want live updates - both on good small caps , market movements and everything.

Markets has been doing pretty much as called since 1260 where I called for a rally above 1300 - and yesterday we got the move above 1300.

So what I found VERY interesting yesterday - was SPX up 0.83% RUT up 0.32%. Uh oh... as I have been telling MANY times before - this is a BEARISH signal , as the Russels and small caps are leading markets up and down. Wednesday were the FIRST day and FIRST signal since I called for a bottom mid June that I think a short term top is near as the small caps is lagging to move a lot higher.

Looking at TZA 30 min chart I have a bullish MACD divergence in place - perfectly for a bottom and a negative one on TNA , telling me its time to begin switching from being BULL to BEAR again. Sentiment after last weeks has been changed very much - which I just LOVE to see - as everyone I saw called for a big move down when we traded at 1260 and everyone were scared to buy - I was a buyer. Right now people are feeling better to get into markets again and some are thinking we go to new highs next.

So what is to come next? I dont know.... really no one knows - but I will give you a direction where I think we will go... and as I see it right now I think we will take out MA(200) this time and flush below 1250 and move further down very fast... so I think a big plunge is to come soon.

As I've had a target before QQQ is getting close to my 57+ level where my pattern target suggested this would move. QQQ closed at 56.3 so a last sqwiize higher will make it.

Conclusion: All in all - I think we are near a short term top - I've begun from yesterday taking the profits from my swing trade TNA 68.8 50% and will sell rest of 50% sometimes Thursday and begin to move into the opposite TZA in a size position for a swing trade. This is my plan - if markets goes red Thursday and confirm on daily chart I will take profits and get into TZA - if markets rallies big I will take profits on TNA on higher levels and move into TZA lower, so all in all - we had a very nice rally from MA(200) which has been tested twice now - we are going to test MA(50) next imo and then 3rd time is a charm - we will plunge below MA(200) next from here all IMO.......

Hope you enjoy my blog , EVERYTHING here is for free , use a lot of time doing this - I post my trades and do analysis on them - you dont get this ANYWHERE better for free imo - hope you will take time to review my site on investimonials or share to others you know off.

Have a nice day