Wednesday, July 21, 2010

July 21 EOD Update

Breadth and Breadth. Guys, this is what i have been repeatedly stating for a while now. Market is a TOAST, Literally. What you are seeing is just exhuastion plays by MM's to chicken out as many as they can. If you were long or short in the last 3 weeks, you would have probably wiped out your account had you been trading heavily the 3X etf's. A/c wiping out in 3 weeks???

Yes, this is what they did. Nothing changed and as you can see from the above chart. All of the Trendlines are pretty much intact and doing pretty good. All those who were able to double down or add more shorts to their existing position, you were one of the extremely lucky folks i'd say. :-)

If you look at ANY 3X Bear ETF, you'd see that they are almost all in a HUGE consolidation within a tight range for the past 2 months. They are ALL ready to breakout. Once they do. I can almost guarantee you that they will DOUBLE within NO time and will actually consolidate at those prices before making any further moves.

Hold onto your precious shorts guys. You will be handsomely rewarded.

PS: Do NOT play options unless you know what you are dealing in. These whipsaws, ups/downs remove any profits that you would have otherwise had.



  1. Hi Jason,

    I have enjoyed reading your views for a few days now, mostly I camp out on Cobra's blog. I agree with you that in fact we are within a vicious range and the violent moves make it difficult to stay focused and not whip-sawed.

    My holdings are diverse (you can see them on my blog, link on Cobra's page), but leaning to the Bear side. I think this is going to end very badly for the longs and buy-and-hold folks.

    May I add your link to my blog page? I think those that follow my crazy VooDoo TA will enjoy your posts.

    Thanks and have a great week!


  2. Thanks MK. Yes, please do. I have added your site to my blogroll.

    I go with a very simple principle. Trend and Breadth.

    BOTH are down on daily,weekly and monthly charts. Hourly charts were bullish since monday. But larger timeframe takes precedence and hence shorting all the rallies was the right trade all along.

    Also as i stated, on a longer time frame we are only doing lower highs, 1200, 1100, 1090's and so on... It isn't difficult to identify which way this thing is going.

    U 2 have a good one man.

  3. ARE you holding on to your ETF bear funds for long term? I'm thinking about adding to my IRA account. What are your thoughts?

  4. Unfortunately i cannot answer your question directly. But in simple terms, you can check our daily updates to see our current stance.