Market view

Wow - what a NASTY day - all the gains made were nearly gone in just 1 day yesterday - and my big profits in TNA just erased and got down to flat again near my first swing trade entry.

I did not really expected such a big move down so what is next to come?

1. I got daily sell signals on all indexes yesterday.
2. We did not hold 1170 which were important for bulls..........
3. My thesis tells me - that we SHOULD BUY this dip and we should be higher again next week.....
4. 30 min chart and 60min chart , very short term charts are very oversold and suggest a green day Friday
5. We might be forming some kind of double bottom from last time we were down here - before we rally higher.

Overall I'm still holding my swing trade TNA 37.8$ and hopefully we dont get a major big gap down tomorrow below all supports.... that would be ugly.

My thesis still tells me we should buy this dip and the lows were in at 1100- seems like we could make a double bottom before we take off around this level... or maybe 1120 on SPX.

My fib top cycle is late next week.... for a top.

Longer term view:

Looking at my longer term view I wanna share something really interesting..... I wanna look at TRAN - Dow Jones Transortation..

When I look at my 5 years weekly chart I see a VERY interesting pattern...

Overall - the weekly chart suggest that a bottom is getting close ... a major bottom (over next 1-2 months imo). TRANS tried to make new highs this year , but got rejected from 2008 highs and 2007 highs. The very interesting pattern is that IF TRAN get down to 4000 - which is 300 points lower from current levels - then a MAJOR .. and MAJOR bottom could be in cause if this level holds - then we have a pretty nice inverted HS pattern on the weekly chart.

If this is true - then we will get a massive rally to come to new highs and a lot more... but overall its just something which I found interesting. I will at least be watching TRAN 4000. This could mean we will get QE3, QE4, QE5 and so on.. and inflate the debt bubble away... who knows.

Come and trade with me on we make a killing both up and down in the markets http://premium.nwatrading.com/


Have a nice day and enjoy weekend everyone.