Friday, January 13, 2012

Market view




Again markets had a pretty good reversal from yesterday morning ,, and then came back up as bulls bought the dip (Again) ,, people now think that bulls is going to buy the dips all the time now ,, so suddendly we are going to see a sharp reversal ,, as this wont last.

Just in case we gap up higher ,, SPX have the last fibonacci retracement at 1307 right above us,, which is a huge resistance from 2011 top and 2011 low.

All in all ,, markets still below 12.500 on dow and JPM is going to make a report.

Remember JPM usually the strongest bank of them all ,, so bulls better hope they make fantastic results ,,, if not people would be very worried about the other earnings.

I believe that financials is a great short with BAC, JPM, C at those levels now ,, as they over next weeks most likely will fall down hard.

Obama is now asking congress to raise the debt ceiling again by 1.2 trillion ,, and the vote should take place next week,, (again going to get the politican theatre???)

All in all , staying patience ,, think about it ,, SPX have moved up around 40-50 SPX points in 1 MONTH ! This is IMO extreme weak ,, and I tell you know that those 40-50 points could be erased in a few DAYS,,, but again all those days is making bulls more bullish as they "feel" that there is no end with this,, but as I said ,, I think an event is coming which will make the markets plunge very fast so I'm just waiting patient for this as I believe it will come before 30th January and the markets have so limited upside vs the downside.

Look at the NYA chart pattern ,, possible with a MINI formation and now a MAJOR formation ? If this is true,, I tell you 2012 going to be a nasty year in stock markets..... and I think its very possible.

Conclusion:

SPX have a major fib retracement from 2011 highs to 2011 lows at 1307ish ,, watch this IN CASE we go higher...

All in all upside again extreme limited ,, markets been moving up 40-50 SPX points over 1 whole month ,, which is very very weak and only 40 SPX points higher than I thought. Just wait when we get the flush in markets ,, those points will be taken out very quickly IMO...

Holding all my shorts patiently TVIX and TZA ,, no worries with this - however I would like to see some concerns in markets going into the weekend which means I would like to see a red day here on Friday.

1 comment:

  1. What a crappy price action today. Eagerly waiting for your next report. QQ: do u only play stocks? I've never heard you talking ES/NQ/TF etc. 3X ETFs are killer - huge theta.

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