Market view

Wow - markets been dropping like a rock and really CRASHING down huge. My downside targets of 1130-1150 on the TOPPING hs pattern is already fullfilled right now , which means that the downside should right now be very limited.

I got into a TNA position some days ago as I thought of a relief rally - however I thought it would only be for 1-2 days. We did NOT get any kind of relief rally , so I sold my TNA shares in the morning gap down with a good loss.

As you remember I have been long TZA swing trade position from 37.5 and until today I have been holding this as I thought the lows was NOT in... and fortunately it was not in...

I took off 50% of my TZA swing trade from 37.5$ to 60$ today - as I think we are getting very close to extreme of extreme... and with TZA up near 70+% I locked in 50% of my position....

This is what I wrote 29th July:
"Its hard to predict the exact movement , but I'm quite neutral and leaning to the bearish side over the next weeks as I dont think a bottom is in place. If we break the MA(200) then I see the topping HS pattern playing out with a target in the 1130-1150 area...."

Got a few TZA as a starter on Friday at 37.5 - not much as I'm not overly confident this time , but if we see TZA above 40 next week I bet you its gonna go which means markets going down below MA(200)."

So far so good - my HS target pattern wrote 29th July 1130-1150 already fullfilled.. + some more. TZA above 40 and it went off like predicted too.

I'm still holding rest 50% of TZA position until I get a DAILY sell signal on my charts on TZA , which means I get a daily buy signal on TNA.....

Until then lots of cash in hand and 50% position still in TZA from 37.5 riding the rest up.

What I want you to know is - that those gains like we have seen in TZA and been riding it up nicely is very much possible. We are near some huge support areas right now and there is panic and blood everywhere in the streets now - usually good times to buy. 1100 on SPX is a good support area , but if markets and SPX is going to backtest a broken trendline from bull market thats around 1050-1100.

What you have experienced the last 1-2 weeks is what you are going to expect in the future by 2012 and beyond after election next year. I think we will just see this kind of move just for a long time.... and move below 666 march lows by then. But until then we will try to ride all the market rallies up and sell offs.

Conclusion: I'm still in TZA 50% as I think we might have lower levels to come , all my HS topping pattern targets are now fullfilled... so we dont need to go lower than this IMO - but I have a fib date bottom cycle late this week - which means markets may still go down into end of week or possible just get choppy/ sideways/ down into end of week.

I think we are getting close to a MAJOR buying opportunity - and I think we should be ready to load up longs with both hands soon... there is HUGE profits to be made soon.... and as I have been riding TZA up lately I will ride TNA up next with my swing trade position...

For now Im watching markets very closely over next days and will see when I get a buy signal in TNA. But just so you know - I think we are damn close to a bottom before we are going to see a rally. Depends how much lower we go , but I think we are going to backtest the broken trendline in the 1250-1300 level again - but depends how much lower we go from here ....

Overall be ready with your ammo..... we are getting close.... and it will be an unique buying opportunity IMO. Dont panic like all does right now , smart money will soon be ready to be buying up.

I've joined #NWATRADING or http://premium.nwatrading.com/ as a featured trader in there and working on it with tjtakes on twitter.

If you join there we have live chat room and I will post everything intraday to members and begin to post less on twitter.

If you join by knowing me and this site - you get 8$ discount. Just think about how much you could have made in TZA lately it will get paid fast back.

There is no bullish divergence on 60min chart TNA - which tells me dont try to buy it for a swing trade yet - I wanna see some bullish divergences before which gives me more confidence in going long for a swing trade. It might occur over next days into weekend , but time will tell us.

I for myself lost a lot on my TNA relief rally trading shares - which I should NOT have done.. just stick to my swing trades where I thought the low was not in and not catch a falling knife , well .. I learned.

Already in early June I made a call with markets to 1120-1150 , no one believed that we would reach this target as everyone were happy and we traded near the highs - now we are down here... and I'm starting to get hungry. So I'm getting ready to buy with both hands also for long SWING trades.... but join our room and get everything live.

Have a nice day everyone and hope you do well out there.