Market view

What an AMAZING week we just got with our shorts all of them working out so well - DRV - EDZ - TZA still holding all major swing trade positions as markets plunged down near -3% and closed RIGHT at some heavy support which is a MUST HOLD for bulls.

As expected I said a big plunge on friday which we got - and I thought that markets would "hold above the support" so the bulls could buy up before weekend and give them another chance to get in on support.

The thing is - right now from what I'm seeing dow jones and SPX have potential topping hs patterns which gives me a target of SPX 1050 and dow jones 10100... wow - thats a big drop indeed... but again that is how it is and eventually I think we could reach those levels.

The thing for next week is that I think on monday markets will be hysterical as I count monday next week the most bearish day with this friday - so I would not be "surprised" to see the markets tank another -3% or even more on monday. In case we begin to tank monday huge - I'm going to lock in profits on my short positions as im already up huge....

You should really be ready for another WILD week - I think mkts could see a rally sometimes next week too - but we could easy see some wild choppy swings by late next week with the debt problems and Greece.

On the bigger picture I think we are on the way down to make a new low to make 2011 year low sometimes in October.

If you have made money based on my charts and analysis I would kindly ask for a little donation as it takes a lot of time to do all this every single day thats all I ask for - thank you :-).

Remember - markets is in a BEAR FLAG PATTERN - which you know leads to the downside - so its only a question of time before we breakdown. Monday could be the day and if Im right - Monday could be a huge down day too starting with a gap down.

But I dont see us go straight down to 1050 area - I think we could rally in between and thats why Im gonna try ride both markets up and down in the near term.

The dollar UUP still rallying as called 2 weeks ago with the FXE (euro plunge) which I also called.

Near term you could expect the dollar to pullback with a bounce in the euro - but after that and longer term dollar should increase from here.

We are killing it in www.nwatrading.com a memeber joined on Wednesday and since then he made 950$ on the trades we had.

Have a nice day and enjoy weekend - and get ready for the next week - its gonna be wild.