Market view

Markets had a fantastic rally from my bottom call at 1078 where I went long via EDC 11.75$ for a swing trade and ended up this week in major profits. Also sold lots of solar stocks with great gains last week 10-20% and other small cap stocks.

I still remain bullish biases and I still think the lows for 2o11 is in - IN CASE its not in , we gotta have a fat reversal early this week, but I doubt it....

The markets is extreme overbought short term - so a pullback could be in the cards soon - but I think its a buyable dip we will get before higher levels and honestly I see us above 1200 and maybe 1250+ range over the next weeks.

Looking at the weekly charts it suggest that we might start a big rally soon (we already rallied a lot , but I mean above 1200 area.)


We got a bullish piercing pattern on the weekly chart SPY which looks very bullish to me and "bottomed" so still believe the lows are in.

Right now all my daily charts is on full buy signal and as long markets have a buy signal I remain on the bull side. When I get a bear signal , then I might try to short the marktes and take my swing trade profits - but until now markets needs to prove it first.

I've had a bottom date for 2011 at 7th of October 2011 - so this confirms with my view that we have seen the bottom for this year 2011. If not , they need to make a deep fat reversal this comming week and take us lower - but I really doubt it.

For now I think we could see an impressive rally comming next 4-6 months a multimonth rally and who knows how high we go. For now I dont believe that we take out this years highs , but who knows...... bearish sentiment is still very high in this markets and if government is trying to pump lots of money in the banks and system they will inflate us higher.

Conclusion:

Remain long EDC 11.75$ swing trade , in major profits already but looking for more - I think the bottom of 2011 is in most likely , but bears can have a chance IF they show up early this week. If not I believe stocks are cheap now and should be bought. I see a multimonth rally starting from this month October until early next year 2012.

If you wanna daytrade/swingtrade or help with small cap ideas , follow me on twitter Sqwii - or get into www.nwatrading.com our live chat rooms. We have made a killing last many months and our goal is to do this every day , every week.