Market view

Markets did a NIIIICE rally yesterday where we bought the close on Monday via TNA 39.6$ and it ripped 11-12% higher just yesterday !

This was the move I were expecting and to me looks like it could be the start of the last rally before the bear market would begin again imho!

Actually what I did yesterday were to take near all profits in my TNA position as 12% in 1 day is a great gain and that the very short term charts is overbought on 30min and 60min chart.

I've got a target on SPY of 124 on Monday ,, and we got pretty much what I wanted for the short term.

Right now I see a possible mini pullback coming to test SPX 1230 MA50 on daily chart -- in case we pullback to this area I may add my TNA again.

In case we GAP UP today (Wednesday) I'm going to add/buy TZA as I think we either way would get a pullback to 1230 very likely,, the most bearish scenario imo would be little mini gap up ,, and then hard down ,, but thats why I'm going to load up TZA.


Ok where are we now then? I believe this is the LAST rally we will get possible from October lows where I called 2011 bottom. We are probably going to test 1270+ and possible higher levels ,, but I only give it this week,, because I think ugliness could come in the markets before new year.... so I'm prepared to switch my position to TZA.

If you are a longer term swing trader ,, in case markets rips a lot higher ,, you may take rest of TNA position and start buying TZA or TVIX for some swing trades.

I believe when SP downgrades eurozone which could happend over the next 2 weeks from now ,, markets could most likely get a little mini crash , so be prepared for this,, as it most likely will come one day.

Yesterday we pretty much nailed the top in mkts ,, join us in www.nwatrading.com to get LIVE help when to buy sell with overall targets and stuff.

Conclusion:

I've sold most of my TNA I got at Monday close with major profits in 1 day ,, I got a few TZA overnight hold for a possible pullback soon and I'm going to add rest TZA in case we gap up higher today,, after this I'm going to sell rest of EDC/TNA I hold if we gap higher wednesday. For no matter what I believe we test 1230 area on SPX before higher ,, but time will tell. I think this is the last rally we get before the bear market begins goes for it next leg down soon.