Wednesday, January 4, 2012

Market view






Tuesday were a great day to show many people that economic news dont have anything to do with the overall markets. Markets gapped up near 2% higher on no real good news but thats how the banksters play it ,, and looking by the charts we know WHY the did it,, to make the ES SPX hit 1280 to the penny which is an IMPORTANT trendline resistance on SPX.

Not only this ,, but the dow jones also hit right near one of my favourite spots for a top,,, right near 12.500 which came pretty close as the highs ,, then we got a little sell off from this area until close.

So all in all,, with the dow jones hitting some major trendlines + they gapped SPX futures to hit major upper trendline and got reversed from it + we have VIX on weekly buy signals ,, all charts really indicates that this rally has NO legs.

Remember I believe we will take out October lows and believe that this is just a bear market rally,, the bear market will commence and we are going to see below 1000 on SPX this year.

The time right now is NOT to buy long and go long ,, I hear targets of 1350-1400 again now ,, which is a good sign BECAUSE sentiment changing more bullish. Remember in early October all people were bearish and short? Was October a time to buy? YES ! Thats why I loaded long when everyone where short - now many people turned bullish and I'm extreme bearish here at the moment.

So what would be great is a fat major reversal to then downside sometimes this week just as a nice rejection.

Conclusion:

Added: Added few more TZA on the dip yesterday for a swing ,, average 26.7 so underwater a bit ,, but can hold and TVIX holding from 29$ average. All major positions.

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