Markets had a HUGE down day yesterday , which started pretty decent , but then plunged down all the way down to near 1250's intraday. Shorts like TZA and EDZ made a killing $$ yesterday and both up near 10% end of day.
The only thing I lost on were my short silver , which I took 50% loss yesterday and will take the rest if it continues to move higher.
My TZA frmo 37.5 working out very well and holding all still - I still believe it is NOT safe to buy the dip , but only sell the rips for now - so dont go all in stocks yet , however I see lots of good ones for biotechs in the longer term where I got THLD for 1.61$ for a 1 year hold.
The break of MA(200) was the key for the selling to begin and as expected we broke that level and continued to drift lower.
My monthly charts gave me a longer term sell signal which suggest we are entering a bear market now from the bull market we had. So I believe we are in a bear market right now - but only believes so until we get a full blown QE3 later this year possible.... then I think we may go to new highs , but until then you see POMO is not helping markets at all right now.
All in all - we may begin a contratrend rally soon as we are down so many days in a row - so that favours the bulls short timeframe , but I would sell the rips if we get one to 1300 or so as I think we are heading below 1250 this time and to 1230 for the next major support.
Have a nice day
No comments:
Post a Comment