Market view

Pretty boring day as markets closed flat at 0% ,, nothing really changed.

From my view a cycle start from YESTERDAY started ,, which suggested big price swings in markets.. we did 100% not get any swings yesterday ,,, so lets see if markets able to make some big movements end of this week.

We now have italian and spanish bond auction ,, I think those things will weight on the markets those days + US economic data.


So if we look at things I would like markets to really start a sell off into this weekend with concerns ,, which would escelate into next week , that would be my best count on the markets right now.

Dow jones again hit my 12.500 area trendline and 100% I would like this one to hold which is quite important.

I believe after this move is done ,, which is a major move to upside then I think markets will sell off hard as reach new lows from October 2011..

Conclusion:

My TVIX moved up 3% yesterday which were a good indicator that still with the markets flat ,, fear increased which is another good sign imo.

VIX hit the 20 mark and bounced a little bit on wednesday.

People telling me that VIX near 20 levels and markets wont sell off are 100% wrong. With the VIX this low ,, it has the best opportunity to begin to rise from here ,, which is bearish for markets. So what I still believe is a major move higher coming in VIX and major move lower in markets.

Looking at the weekly dow jones it looks to me like a near perfect "rising wedge" + a right shoulder in a major topping head and shoulders formation which is extreme bearish -- the same goes on with OEX.

Conclusion:

Remain long TVIX and TZA 80% and 20% most heavy with the TVIX and I believe that concerns will come into markets before this weekend which would escalate into next week to the downside as I see some very bearish things forming 19-22th January. Italian and Spanish bond auctions today and tomorrow will be important on the calendar imo and could "spark" the ignite on the sell off starting.I have been pretty bullish BAC and other banks when traded at 5$ area ,, right now I see many banks topping out and I recommend to begin heavy shorting banks from this level.