Markets did an amazing rally which I did not see comming - and went up 3.5% on very low volume.
We are still in the bear flag pattern and its been choppy trading last weeks.
I got a daily buy signal in market indexes which tells me that the short term trend have changed - I think most people covering before Obama meeting.
However my thesis tells me that the most ugly and bearish days should be those days into weekend and possible Monday next week - therefore I hold all my short positions TZA , EDZ and DRV.
Conclusion: With the recent rally yesterday on low volume I remain long TZA 43 , EDZ 19,7 and DRV 11$ and will continue to hold those at least until Friday
Markets is not very overbought short term and good chances we will start to fall down again from here with the most bearish days ahead of us. Its very possible we may get a little gap up but we have so much overhead resistance in the area 1200-1210.
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