Bullish long shadow on monthly chart of major indices

SPX closed with a long shadow on the monthly chart. This is reflected in SPY and DIA too. BHP also closed with a monthly long shadow and positive for the month of November 08. We'll get a huge rally in Dec 08. Major short squeeze is on the way.

UUP weekly and daily show more upside for commodity

Weekly and daily UUP charts show that there is more downside for US$. This is good for commodity. I'll hold on to my long BHP trade.

ESZ08 touch and go...

Future back test the blue trend line and off it went. Let see will this bull hold.

Sectors for bullish trades

We are on slow and steady move up. XLK is one secitor showing strength.



BHP, FCX, MT, BTU are moving higher. This could be due to the falling US$.

Financials are holding the market up

My signals are showing XLF is holding up and with XLF in bullish mode, the market will trend up. I'll expect the market to be even today and resume the rally tomorrow.

XLF weekly: My signals are showing sign of cross over.


XLF daily: Slightly below resistance of $13.


XLF hourly: A bull flag is form. It should break out in the later part of the day.

GG gap filled.

GG gap filled for a long trade entry.

UUP moving down again.

My entry point on my BHP long Call.

BHP is a buy when US$ drops

Miner giant BHP gaped up huge for the past two days as dollar drops. Upside is still available as US$ drop to my target around $25. Today pull back in most commodities present buying opportunity. Among commodity stocks, BHP has strong strength. Will be using UUP and SPX's 50MA to exit this trade.

GG is a buy when the gap is filled.

Gold miner, GG is posed to move higher. First target is $35. I'll buy some when the gap is filled.

Possible market direction next week.

The weekly S&P500 chart shows that the market just broke out from a bear flag. The targeted price level in the coming weeks could be around 660.



However, looking at S&P500 daily chart. It could retest 850-860 area before the drop.



This is a different view from the earlier post on a possible bear market rally. However, I still think a bear market rally will starts from here as $VIX is telling me it is falling down and SPY bounce off from the lower channel line.

Bond has a lower high day while gold surges

IEF is moving lower to close the gap and GLD surges. Money is moving to gold and some will move back to stock. This could be the start of the bear market rally. However, monitor closely when IEF gap is filled to confirm the direction.





The US$ index looks going to roll over. This is good news for stock as you can see the relationship of UUP and $SPX.





Now, take a look at $VIX, fear is getting lower as we get a "Bearish Engulfing" dark daily candlestick. Monday could be an up day if there is follow through.



A closer look on 15 mins of $VIX shows that VIX is touching the lower trend line the 4th time. Let see will it succeed to break down from here.



I'm still holding to my long IWM Dec 45 Call with some nice 25% profit.

Counter trend move has started

I'm out of all shorts positions. And if IEF close with a lower high, I'll add to my new long position. One example is IWM.





Buy on weakness if the next hourly bar closed in white candle.

Futures are indicating a bounce for the market

The bounce we are going to get is the result of extreme oversold of the market. Here is two possible shorts. These are stocks that move opposite the market.

VIX has yet tested 90

For the past 2 hours, market looks like it's going to turn bullish. I'll say we need $VIX to hit 90 and reverse before any substantial rally could hold.

A reminder for myself:

DO NOT TRADE THE LONG SIDE UNTIL THERE IS TWO UP DAYS IN A ROW. IT IS STILL COUNTER TREND.

There are plenty of shorts idea around which are late to the party!

IEF reversal black candlestick

If by EOD, IEF daily candlestick is still black and tomorrow we get a confirmation by a bearish candlestick, the bottom could be in... Let see will this play out.

More shorts idea

Yesterday sell off presented many shorts ideas. Here is a few I think good ones to buy PUTs.

LH moves lower from the gravity pull of this bear market

LH is posed to move towards the 50s next.

10 and 20 MA crossed on VIX

The 10 and 20 MA crossed on VIX means there is more for market to drop in the coming days. We could see S&P500 at 750 soon.

Money continue flow into bond is bad news for equity

With money still moving into bond, unlikely there is bullish follow through in equity market. I'll maintain my shorts until there is sign money is flowing out of bond.



NAT is one short candidate for today. A steady raising wedge is posed to break down soon.

Gap down filled and hit 61.8% retracement level

S&P500 gapped down when market opened and the gap is now filled. At the same time it was also the 61.8% retracement level. I think we are going down hard today. Still remain shorts.

WYNN slices through Fan line to move lower

RSI still not oversold. Plenty of room to fall.