Market view

Well there is not so much to say as markets were pretty much flat again ,, choppy and VERY slowly day ,, no big moves yet...

I still expect for this week a big move coming in the markets and gold and silver by mid this week (wednesday) and rest of week,, and according to the charts looks like silver and gold could go up on this.


The thing is ,, I dont think gold and silver will go down anymore like the markets - to me seems like gold and silver soon could turn out as "safe heavens" again for fear moving into markets again ,, and this is what I'm looking for.

This week should be a week of concerns moving into next week.

Why?

We have Spain and Italian bond auctions Thursday and Friday this week , + we still have some looming EUROZONE Downgrades by SP and Fitch which comes out most likely before the 30th January EU summit meeting. Not only this ,, but right now we are moving into earnings season which I expect to be weaker than all the other quarterly data we had over the past years ,, I think the guidances will be much weaker than expected for the next quarters which could also drag down markets.

Not only this ,, but Greece is not back into the headlines as they may deffault very soon , if they dont make a better haircut which I think will be very hard for them. So they could be weeks from a deffault as they wont get a new bailout tranche if they are not doing well.


Gold and Silver expecting a major move from tomorrow especially ,, so watch gold and silver and right now looks like inverse hs pattern with a potential breakout to upside.

Ovearll earnings should be much weaker here in Q4 than other quarters and guidances should also be lowered ,, which could drag markets lower. Markets have NOT been able to rally in the BEST weeks of the year ,, markets has stayed pretty flat which means markets is tired of moving higher. So I believe all in all that a major top is in the forming still ,, we just need some kind of trigger for the sell off to start imo

So there is a lot risk factors in the near term. According to the markets Dow Jones is still below the 12.500 and RUT (small caps) is still below MA200. The question is just ,, do we have a last push higher to test MA200 on daily chart and the trendline on dow jones from recent top ? Well who knows. At least I got a sell signal in AAPL daily chart today so a reversal in techs is most likely here ,, and if AAPL is starting to fall ,, so will markets most likely so thats an excellent sign

I keep holding all my shorts ,, TVIX and TZA , no big moves yet ,, just slowly here and waiting patiently for both to spike higher soon.

We still have a the bearish divergence in the markets with dow jones at the highs and SPX, NDX , RUT all lagging behind ,, if true this is usually very bearish for the markets. So right now I stay patiently short markets and going to at least hold out for this week and next week.