Market view

Markets did decline for the 6th day in a row - amazing and long time I have seen that.

Actually I bought some TNA (trading shares yesterday at 72.15) just to play a possible bounce setup near term as I believe we are in the perfect spot for a bounce now.

I dont think the bounce will be big - my upside targets is first 1290-1295 and if we breakout higher today - then I see 1315-1320 as the next spot. Overall I think the decline is NOT done , and overall we should head down to 1250 or lower after this bounce... so therefore I hold all my TZA from 34.5 with the upside target of 45 before selling any right now.

So what do I think now ? - Still short and the bears still have control - but we really need the "bounce" soon and everything at me telling me we SHOULD have a bounce...

I'm going to sell my trading shares TNA on the bounce if we reach 1290-1295 just to take the short term profits.

UUP (Dollar got a bullish daily buy signal yesterday too)

SPX did reach 1278 which is a fib support from march lows - so perfect spot for a bounce too...

Those bulls who has been buying dips over last weeks have really been screwed big time as we havent got a bounce - and you see you should not try to be a perma bull or perma bear but play both sides when its time. Thats why I can change my opinion 100% upside down if charts tells me so - cause I just read what the charts are telling me.

So my outlook is a bounce - then further down over next 1 week...

Have a nice day

Market view

ANOTHER red day - wow 5th day in a row - its really long time I have seen markets make 5 days red in a row , usually we have 5 days green in a row... but red... must be something really negative or reverse POMO going on..... :-)!

Markets started yesterday with a gap up and a little run into day end , but then near Bernankes speech markets really took a hard dip and closed RED for the 5th day in a row.

I dont think the correction is done and think we have some more downside before a major rally which I will play when I think its time, but for now still holding all my shorts both TZA (34.5) and ZSL (16.6) - looks like silver could really dip hard soon

Overall - markets is very oversold right now - we got a bounce yesterday and probably this was it ? I were hoping for a lot more for the bulls to make a bounce , but time will tell.

USUALLY a bottom is in , if markets GAPS down hard - then reverses and end up green and strong for the day... a bottom is not made by a "gap up" imho which we saw yesterday.

I'm still looking for 1250 over next 1 week from here , so it may be choppy up and down , or we might get a multi day rally - but overall short the rallies as we should test MA(200) near 1250.

We could easy see below 1280 today before the next " bounce" up today , and I still have a target of TZA 45 - inverted HS target. I have a SPX target of 1250 ( HS topping pattern ) - and Russels 740-750 HS topping pattern target.

Looking at europe - DAX in a pretty clear HS topping pattern too - looks like about to breakdown hard...so watch if DAX breaks below 7000... could get nasty


Remember I've told people already from 1st day of June that TZA could go to 45 when it was trading at 33 with charts and targets - no other places you get all these great information for FREE......


On the SPX chart I showed you where I called the recent bottoms and tops in markets - pretty accurate over the last 3-4 months , had a bad late 2010 , but no one makes 100% perfect calls.

Overall - enjoy the summer and sun and stay short right now imho.

Have a nice day

Market view

Markets had ANOTHER nice down day and the shorts I have got up again for 4th day in a row!

Amazing gains in TZA from 34.5 now near 40 - actually TZA broke the neckline on the inverted HS pattern at 38.5 - and this targets 45 in TZA , which we should see over next 1 week from here. The first chart was published the day before 1st June - when TZA were trading at 33$.

With the markets down 4 days in a row - EXPECT A PULLBACK in shorts and BOUNCE in markets, we are extreme oversold on the short term timeframe and thats why there is a good possibility we get a good bounce , also possible we get a multiday bounce , but I dont think we will bounce much imho.

Markets is now oversold on daily chart - but remember - we can stay oversold for more days..

My target for this correction is MA(200) which is 1250 area - so this is the target I am looking for right now - not sure if we get it - but I dont think the correction is done yet.

There is a good possibility we will bounce to 1313 to make a backtest of broken trendline in the comming days - overall I would not bet on it or play it right now as I still think we have more downside....

I feel sorry for those who has been buying the dip all the day down - but for now its not the time to buy the dip as every dips should be shorted right now.

So for now I am holding all my shorts with a downside target of MA(200) at 1250 before a major new rally.

Market view

Another great day with a SELL OFF :-) !

What was unusual today - normally if the markets gaps down on unemployment day , it rallies into close - but we actually got a little rally intraday , but then closed near lod on all indexes - only QQQ closed below lod and down -1.5%.

Markets looks so weak right now - even with euro up 1% markets cant manage to rally - this is a BIG RED FLAG. Watch when the dollar bottoms out then the markets is gonna fall a lot more....

Overall the dollar UUP is oversold on daily , 30 min and 60 min now , so a very good spot if its bottomed here on Friday. I dont know - and have NOT got any buy signals in dollar yet - still on sell... so maybe it will go lower monday - I really dont know yet, but according to the charts it could be a good spot to bottom.

Holding all my shorts TZA from 34.5 , closed at 38.01 and looking great for next week and ZSL 16.6 which closed near 18.

No reason to be long markets now - I think we will get some possible short term rallies for maybe 1 day or maybe 2 , but SELL those - as we will head lower over next weeks imho.

They managed to close the SPX right at 1300 , but wont help next week as we should see below 1300 and possible below 1280.

Market view

Markets did close near flat yesterday - I were hoping that bulls were stronger and could make a better bounce - but the bulls seems like they have not much to do right now - bears looks like in total control to me right now.

FXE (Euro) hit my target - have been bullish euro over last weeks with the comments of a dollar pullback - we have seen that now - its time to get heavy bullish the dollar and bearish euro - as the euro hit 1.45 target which I think should hold as a "right shoulder" in a topping HS pattern in FXE. FXE has on 30 min chart a TRIPPLE or multiple bearish MACD divergence which is really bearish - this means that the euro is going to fall hard soon , and we have a bullish MACD divergence on dollar - which means dollar is going to rally hard soon..

If thats true - the next move to come is a big fat downleg in euro , which would indicate markets could see below 1250 next weeks.

Right now still holding all my size position in TZA 34-35 and ZSL 16.6 - both looks like about to go to me.

So what would bring the euro down this hard and dollar up? I dont really know - just based on charts I see a good posibility what is forming now , I may be wrong if we see a major rally more in euro , but have the feeling that dollar bottomed and euro about to top here, look for a reversal soon...

If I'm wrong I will take my profits in TNA which I am already up from and ZSL , but only doing this if I am wrong and will post on twitter what I think intraday live. IMO short commodities , silver and gold - all gonna fall...

For todays trading - looks like we could see another major drop in markets probably below 1300 ? Will the lows from last time hold ? I dont think so.....be prepared for a storm

Got an interesting chart from ETF corner with the similarity from 2010 and today - which indicates the next move is down below 1250.... just saying ...


Have a nice day

Market view

Woooow what a day yesterday.

If you followed me on twitter you would know that yesterday morning I took my profits in TNA from 78.3 to 88-87 level as we began to see the weakness I was talking about. With that in mind I bought TZA the opposite at 34-35 and now holding for a swing play.

I've got a sell signal on all indexes yesterday early morning - and that was the sign to tell me to sell everything I've got and I've also got a buy signal confirmed in VXX and VIX.

The only thing which is NOT confirmed yet is the dollar UUP , which I have not got any buy signals yet - and FXE euro is still on a buy signal here - but it looks like that can change fast if dollar keeps moving up.

I've also bought ZSL yesterday at 16.6 to short silver - where I think metals have another leg down until now - got a buy signal in ZSL on daily chart and it looks ready to go.

So most of the things I am looking at tells me markets is about to head down in a big way soon - as I charted 2 days ago the TZA chart inverted HS pattern - TZA stopped at 33$ and then had a BIG rally from there.

If this inverted HS indeed plays out (not sure) then we have a target of 45 area in TZA which is a lot higher from here - markets could really have a nice flush then..... so therefore I stay long TZA as the only thing right now from 34-35 area.

If we look at commodities DBC - we have a potential EXTREME bearish setup in place.

1. DBC backtested broken trendline and made the kiss of death pattern
2. DBC made a BEARISH ENGULFING on daily chart ( VERY bearish)
3. Potential topping HS pattern with right shoulder now in - the next move would be a flush below neckline at 28.3 and the target for pattern is 24.5 - thats a BIG nasty .
4. That would be inline with markets SPX dropping below 1.250 SPX and down to possible below 1200 for a correction

Ok, I was bullish 4 days ago - YES and markets DID move up - but if the MARKETS TELLS you otherwise - dont stay in your oppinion - JUST FOLLOW And READ the charts and they are right now telling that you should not be long - but short.

Overall if yesterdays down move was a fake to trap more bears - let it be the best short trap ever in 2011 - then I would get trapped , but for now I am holding my shots TZA 34-35 as what I see is a potential gap up today or little bounce before another major drop possible below 1300 this week.

VXX looks like about to breakout of big downtrend too here - which is extreme bullish.... chart posted.

Looking at some big names PCLN made a bearish harami candle and have a very possible topping HS pattern which targets 420 - thats a big nasty drop... so careful.

So time will tell - for now positioned for a very bearish move down - will tell people if I cover and go long again , but for now looks bearish to me.

As long SPX stays below 1330 now MA(50) then we are going to head down imho

Have a nice day

Market view

Markets keeps rallying for 4th day in a row - amazing and I'm still holding my TNA from 78.3$ which closed at hod yesterday at 88.9$ this is more than a 10$ gain PER SHARE , and I'm size in and been holding all.

My plan right now is to take profits on the first day I see weakness in markets cause I wont loose all I have gained at the moment - but on the other side I wont get out before we are starting to move down.

I'm getting a bit more bearish now and think we might be close to a short term top as I see lots of sectors beginning to get overbought in the short term - but remember we can stay overbought for weeks....

Right now my obj target is 1360 or so in SPX - its 1st day in a month which is USUALLY bullish - time will tell if we get another rally today but I think its good to start to get a few shorts (TZA) for a starter... but nothing big before we get confirmation.

If you follow me on twitter I will tell you when I think its time and when I am going to add.

But who knows if we see 1400+ in the next 1 month ? Its also possible - and that is why I dont really know if we are going to head down soon or we just keep moving up. My feeling right now is that on the first trading day in the near future where I see some weakness I will take profits in TNA and some longs and move into shorts for a starter at least.

Until now the trend is up and remains up until otherwise - so time will tell , but be prepared to switch 100% upside down and move into shorts. I've been long SPX 1320 and TNA 78.3 right near the bottom and already in good profits - most bulls are getting into the markets now as they feel safer to do it now - this is the time I am going to be more cautious being long and will ride it up as long as it last. Its PURE speculating - but TZA may form an inverted HS pattern with right shoulder here at 33$ if TZA dont break below 33 with good volume I think I am going to take a good position here as I also see a 30min bullish divergence playing out like I saw in TNA at 78.3. This means a possible rally in TZA could be around the corner - but TZA 33 must hold - therefore I could probably take all profits in TNA very soon and switch to TZA, time will tell...



Have a nice day