I suspect that this week will be an up week. We have hit temporary lows with massive short covering and margin calls galore. We are extremely oversold here and time for a bounce up.

Look at the SPY below which is a 1 year weekly chart. Last week we went to test the low but did no break it on lighter volume. We closed above the open of the week which is bullish. I think were going to up to $105 on the SPY. I am long the SSO currently

Below is a 1 year weekly chart of the GLD (gold ETF that is 10% of the spot price of gold). Last week went went lower to test 9/15 lows, went down on lighter volume (which mean less sellers) and closed above the open. This is bullish which is why I am bullish on gold and buying more of the DGP (Ultralong gold ETF)

I am also long on UWM, DDM, SSO, MOS, DGP, QLD, UYG, UYM and now DIG (I think oil is heading up again).

I closed my shorts except the GS with my stop at 115 and entered into SSO this afternoon when I placed a limit order that paid off well. The SPY (ETF for S&P 500) went lower today into the bar of Oct 10 the big sell off day and closed above that and yesterdays close on higher volume. This is very bullish for the short term. I still think the trend is down but I’m playing the big bounces and falls.

I entered limit order for UWM, QLD, UYG, RRI (trying this again) and UYM.

My timing has been great these last 2 days. My DUG is up 30% and SDS is up 17%. Like I said yesterday watch the SPY and it did break the $95 support and came crashing down to close at $90.02. I have placed a sell in both SDS (115-120) and DUG (73-76) near the last swings.

APWR collapsed today down 24% but I placed my stop and only lost 3%. Always place stops in this has saved me so many times!!!!

Both Nikkei closed -11% and Hang Seng down -7% on Oct 16. This will pull the market down a little more. I also placed long buys on SSO and QLD near the lows of Friday with stops just below hoping this is a temporary bottom and playing for a bounce up.

I missed the DIG by 0.10 cents and missed out on 33% gains

I am still in gold stocks and it’s pulling back nicely on lighter volume. I am in DGP, GG, RBY and TGB.

Sold SSO, UYG, and some GS. I sold the profits, raised the stop to above my buy point so I have already locked in my profits which are over 20%.

The market turned today on profit taking. I went slightly short and bought SDS and DUG. The SPY is a good ETF to track the S&P 500 which turned down this afternoon. We need to watch what it does at the $95 price point. If it goes below and closes above on lighter volume then the market is heading up and I will flip to buy the SSO.

I placed buy orders for FXP (UltraShort FTSE/Xinhua China 25 Proshare) which I think is heading to $120 from $90.4. This went below yesterday’s swing low and closed above it on higher volume which is very bullish. Bullish if you are short the China index, which this is telling me.

I am buying APWR which wants to go to $10-11.

What a wild ride on Friday. We were all over the place with price destruction and big volume. At the end the Dow was down -128, Nasdaq up 4.39 and S&P down -10.70.

We have hit a temporary bottom. This price destruction that last few weeks was equivalent to 1987 black monday. I think this week we will see the Dow climb over 1000 points to around 9500.

I went long gold stocks like GLD, AEM, DGP.

Long GS, UWM, FXI, UYG (augh the Financials), and dare I say it DIG which is the long oil.

These are for trades for the next week or two, then we made capitulate and then down again….but I hope not.

Slope of Hope a great blog on trader Tim Knight added a post showing one of his account with the new short selling rules in place….world of cowards

The chart for INET (Internet Brands) looks very bulls showing a bullish flag pattern with rising volume near $7 price range. The MACD is turning up which is good and Stochastic is above 83%. It looks like INET is going to run back up to $8.00 to $8.50.

Disclosure: I used to work for them pre IPO so I do have share in INET.

What a disaster the government has put us in. The ignorance. They kept saying we were not in a recession….what do you call then having to bail out Fannie Mae, Freddie Mac and AIG! Back on April 22, 2008 President Bush said “Were not in a recession” this was such a lie trying to blind side the general public.

Now with the proposed $700 Billion dollar bail out we will have diverted the toxic debt from the balance sheet of these companies but their future revenue is still broken and weak. The burden now is on the tax paying public. This will take years to pay off.

The euphoria we saw on Friday was just that an over reaction on the market. Do not be fooled by it. Yes, the financials gaped up in morning and short selling was not permitted yet the price kept coming down after the gap up???? Ask yourself…..Should the financials be going up or down with this news? The market was artificially hampered with the inability to short financials.

My outlook for next week is that the broad mark may rise about 5% but then sellers will come in to get out of loosing positions. I did try to get into the UYG on friday and missed it by $0.95 when it gapped up. I think the SPY will try to run up to $130 level where I would short this market. Were still in a dowtrend and the volume on Frida was less than the previous 4 days. Were heading back downt to retest $114.

Now I missed this run and will wait for the pull back. It’s too risky to trade the financials now. Instead I would buy GOLD stocks and the GLD. Investors will hedge their investments with gold.

My current holdings are : AZK, FCX, GLD, NNVC, NTES, PWAV, SDP, VLNC, WNR, JNJ, WMT, CLNE.

Yesterday we saw an amazing pop in gold up $70 in one day which was a record. I have been holding RBY, GLD, GOLD, IAG for double digit gains and with more upside as investors want to go to safety. Gold may retrace down to 820-860 which is great buying opportunity. Gold want to test the old highs of $980 back in July 15.

Bought CLNE today at a $15.05 I set a limit order as I have been watching this for the past few weeks. I Shorted this 2 weeks ago using PUTS and made great money. Now I’m going long since the volume has been drying up on the way down. Also it hit the lower rising trend line to give it support. Target is $18.07