Market view

Markets rallied for the 4th straight days in a row ! Wow what an AMAZING run and amazing sqwiiize to the short sellers - which began to cover a lot lately! We have been riding this TNA from 68.88$ and took as I mentioned yesterdays post ALL profits on the move to 82 - up around 14$ per shares on it. With this - I've also took a big SIZE swing trade position in TZA (opposite) at 34.69$ as I have been looking for a short term top around this area.

Honestly - I dont think we will go down anything hard this week - I think it will be choppy up and down - and nothing special as we are going to head out over the long weekend in hapiness...lol

I think the uglyness should begin already by next week and if I am reading this right - this should be UGLY for markets as I think we will take out MA(200) this time , slice below it and further down. If my topping HS pattern proves me right target is 1170-1180 area - well sounds a bit too much and too ugly I know... but thats just how I see it right now, but lets take 1 step at each time.

There is also the possibility we gap a bit higher today and then down - but I think EVERY more to the upside from here is an EXCELLENT shorting opportunity , all imo !


VIX made a "red hammer" candlestick yesterday from support level excatly - fear is GONE (People happy weee.....) and I'm worried now as there is no fear. As I said 2 weeks ago when VIX were high , then I were looking for a market bottom - which we got - but now when VIX is at those levels , forming a reversal candlestick I'm getting very bearish markets.

Markets has also been up like 4 days , with 1% gains every day - remember , as fast as we move up... as fast we can move down , or faster...

QE2 is officially DONE yesterday , no more QE2 and we wont get any before later this year imo - all in all I think this summer could be rough as last time QE1 ended we got the flash crash.

But again , I'm just reading the charts and ignoring the news. I must say - I have NOT got any daily SELL signals on my charts on indexes yet , as they are all still on buy - but from what I know and see - there is a good possibility that we have topped around here.

QQQ hit my target perfect of 57+ watch the close yesterday... my pattern target made it perfect as nobody really trusted me that we would go this high.... THIS week. I said late Friday target were in the 1320-1330 zone by this week , and lucky enough we have made it to this zone. The euro is touching upper trendline and may breakout - but I'm in the thinking that the dollar UUP is going to have a major major breakout over next weeks from here - just how I read it - and with this , markets should tank. UUP should take out the trendline from June 2010 highs which will make it run up in a hard move.

Conclusion: We have a long weekend , Independence day - as said before markets usually bullish before this and we have seen it , optimism getting very nice again as AAII sentiment has more BULLS than BEARS now - which I just love ! Markets extreme overbought short term and a bit overbought on daily charts - I dont think we will get any big moves on this Friday to the upside or downside as I think the top is forming over days, but I took a SIZE position in TZA 34.69$ and holding for a swing play and looking for some uglyness to begin next week. No one is making 100% perfect calls - neither me. So do your own DD , but this is just how I see things forming now - most people turned bullish now as I turned bearish. Took all my profits on small caps - only in cash and TZA by now , dont wanna be a hero trying to pick a stock which will move up in a down market - so thats why I'm just holding cash and shorts.

Have a nice weekend everyone , hope you enjoy my blog still - would love to see more response from people visiting here, but enjoy weekend and get ready for the weekend update.