Market view

Markets did another nice plunge yesterday ... but again we came down break a few supports - but at the end of the day we hit some major supports which is SPY 115 and Dow Jones 11.000 and held above those levels.

I wanna share with you all that I took my profits on my swing trade EDZ from 19.7 to 27's , DRV from 11 to 13.5's and TZA from 44 to 47-51 area.

The main reason behind this is move is still that I think the "euro - FXE" looks really bullish to me and looks like euro could pop soon - therefore I think a SHORT TERM rally could occur....

However I still believe there is a good chance we take out the 1100 lows - but if we rally next days to 1210 or so - I can always re-enter my short positions.

The main reason for the move to sell my shorts was cause of the euro - it went down to support yesterday and imo looks great for a big run near term. Therefore I find it hard for markets to do a big decline if euro begins to rally.

So all my shorts went up big yesterday - but actually I took profits on all of them and will re-enter when I think time is ready again.

I still believe 2011 lows will be in either this week or next -(so maybe its already in...) hard to say - I would still love a push below 1100

The thing is Russels did get a lower low - Dow jones got a lower low - but SPX did not.... so there is mixed signals.

I bought a few EDC = 3 x bull emerging 14.8 right before close as my thesis is a possible bounce into weekend.

My thesis is markets will see more bullish into weekend - and possible reverse from today to the upside again - there is still the possibility of gap down , but I think we can reverse from this in case we gap down.

Conclusion:

Took my swing trade profits in TZA from 44 $ big gains , EDZ 19.7 (huge gains) , DRV 11 little gains - so im happy for that.

Actually got long STP stock and CYCC.

Have a nice day