Market view

Markets did a a very nice gap down on Monday as there is still big problems in the EU with the euro tanking further.

My short term target for FXE got fullfilled as we got to 1.35$ which I called for 2 weeks ago and then dollar has been rallying big time lately which I also were long and expecting before September began.

Right now it looks like the euro may "bounce" and dollar may begin to pullback for the short term.

Overall according to the markets we did a spike rally into close yesterday which we called in room at www.nwatrading.com - overall I think its just a backtest of a broken trendline we did into close - which is more bearish than bullish.

What I did yesterday was I sold 50% of my SWING TRADE position in TZA from 43$ to 50$ (so ANOTHER winner on my swing trades.... and a 7$ per share gain on a big position)

The reason why I took those gains is that there is a possibility we may get a relief rally to the upper trendline resistance at around 1170-1190. In the case we rally to those levels I'm going to take add to my position again 50% as I think we are going LOWER over the next weeks.

I believe markets is going to breakdown of this bear flag ( which dow jones already did) and SPX target is around 1000-1050 on SPX over the next weeks which I think we will reach.

I will give the bulls the next few days of this week into before Friday to see how good they can do , because I think after this week markets going to reverse fast down again.

Conclusion:

Took 50% of my profits in my swing trades Monday with a big gain at 43$ to 50$ and still holding rest 50% for the next weeks as I think markets going lower.

Markets may try to rally - but in case we rally a bit I'm gonna short the rally - if we just breakdown and move lower Im just going to hold my short positions and ride the markets down.

What I believe is that markets is going to make another kinda move like we saw in August where markets sold off hard - sometimes over the next 3 weeks.... I think we will break down of the classic bear flag which we have like other european markets which is already leading us down to NEW lows below 1100...

So overall I'm very bearish YES - but giving the bulls a change in the short term for a relief rally (why I sold 50% on monday)

Hope to see you in www.nwatrading.com we were killing it all day long yesterday with our shorts and got into short term longs 1 hour before close and rode the markets up into close.