Markets did a HUUUUUUUUGE drop and TZA running way higher , my swing position in TZA bought 37.5$ performing amazing and is now at 48.4$ , big gains (but I have not sold my swing positions yet)
However I thought yesterday we would get a short term relief rally and bought 60.7$ and added TNA more at 59, which I held. I'm right now underwater in my TNA (short term trade for next days) as I still believe a short term rally may occur very soon - but after the short term relief rally we should continue to head down further imo.
As I called weeks ago , target for SPX HS pattern was 1120-1150 and we may still reach this level in September/October or before , but we are also going to get some big fast reversals with big contratrend rallies imo.
Conclusion:
Still holding my swing trade in TZA 37.5$ as I think markets has not bottomed , however short term I think a big relief rally would occur over next 1-3 days or so.
I bought TNA at 60.7$ and TNA at 59 and currently underwater now , 50$ is a huge horisontal support in TNA and I will stop out if we move below this level.
1200 on SPX is big support too and as you see on trendline we are near some big support areas.... where we could rally or bounce from.
Have a nice day and good weekend to everyone !
Hi Sqwii I really enjoy your analysis and I am also looking for a relief rally next week. I just heard the news that the US has had it's rating downgraded from AAA to AA to you think this will have a major effect on the markets or it has already been factored in?
ReplyDeleteThanks for you great work.
Hi Muzz
ReplyDeleteI think most of it has already been factored in , as most people knew a downgrade would come. But who knows if we will just get an extra reaction , but I still believe in a relief rally for around 40-50 points on SPX possible to 1250 or so.
Overall all I can say is that we are near some major major support areas and I really expects markets to at least have a nice bounce from this area before breaking down lower.