Thursday, January 19, 2012

Market view 19th Cycle date high







Markets had its cycle date high today at 19th ,, which starts a new major cycle where the optimism in mkts should have a peak today and therefore the fear should be low.

I like the fact that GOOG tanking big time afterhours ,, which fits with a potential reversal in markets tomorrow.

What is VERY interesting is:

1. SPY hit the trendline today from the top 2011 ,, perfect spot for reversal

2. DOW JONES futures hitting the trendline from 2007 top, 2011 top and now (I think 2012 top...)

So all in all , I remain all in shorts and ready for the fall ,, IMO we could start by tomorrow after the peek in optimism made today and some major trendline spots hits today.

SPX hit 1315 ,, MORE than I expected yes ,,, I really did not expect SPX to see 1315,, or even 1300 , I thought we would stop before ,, but again markets ALWAYS goes to the extremes.....

All major indexes now have RSI(14) right at 70 ,, which is extreme overbought on the daily charts,,,, those who go long here is wicked sick imo ,, the time to go long was in October .... and the time to go short is... now !

Watch for a potential reversal to the downside tomorrow (Friday) on OPEX day.

I'm looking for markets to take out October lows from this level here in 2012... if I'm wrong,, then Dow jones will take out the highs from 2011,, but so far so good.

1 comment:

  1. Hi,
    you are holding long $TVIX since 27,why you are losing money instead of playing longs on e-mini futures already fast 60 points since you are holding long $TVIX? Perhaps finally you will be right,but without part of your money.
    best regards Witold

    ReplyDelete