Market view

Fluuuush and we got a nice reversal bar on the daily charts - all my 3 x short ETF's got on buy signal on Friday and confirmed it in a big way on Monday with more fears about Italy and EU.

The euro plunged down as called 2 weeks ago with the dollar breaking out in a massive rally , which gave pressure on stock markets and commodities.... this was called last week way before it happended. I'm still thinking we will get some more panic this week and this is not done yet! I think we just started to see some real panic - the question for me is just - how low we will go before we make a short term bottom.

Actually there is a pretty good chance the topping HS pattern plays out and target is 1130-1150 level - by September or so. But until thne we will have many short term rallies comming up, which we also is going to play as we are going to maximize profits both up and down.

Right now I'm thinking the dollar has some more upside according to the chart and therefore markets should have more downside short term.

I expect VIX to see 20-30 by Tuesday or so with some panic beginning to set in markets. The question for me , are we going to make a "lower high" before going higher or are we going to take out the lows and flush below MA(200) ? My first thesis has always been we move lower and take out MA(50) first - then MA(200) later this week and possible make a short term bottom 1230's , I have a fib cycle date at Thursday/Friday for a market bottom , so time will tell - this time I'm just gonna ride markets down until charts and stuff gives me a buy signal again.

FXE is getting close to a major 2 year trendline support - and I bet you , if this one cracks down... we are going to flush down very hard in markets and it could be very ugly. But I still have my same thesis that we will see some more panic this week and later this week where a potential short term bottom should occur (When VIX is very high again......) thats when you wanna load up on longs and TNA again.

Until now sitting with all my cash + TZA and riding them up. For Tuesday I would expect more weakness and another Terrible tuesday below MA(50) , but time will tell us. Watch out for 1300 level and if this does not hold... then I think we see 1230. So my main plan is to see if 1300 is holding - if not I think 1230 is comming... this has been my main count all the time that we should take out 1250-1260 level and move lower this week. Give me some PANIC !

I'm going with familiy to an amusement park on Tuesday - so wont be here on twitter for today , but holding all my shorts and cash TZA 34.69$ swing size position.

Have a nice day and remember - you get all these for free everyday, really hope you enjoy it.