Friday saw a great rally with options expiration. Volume was as expected now comes the hard part of following through this week as it will be short week due to Thanksgiving. The bloggers are mostly calling for a bounce up and I see nothing more. If we can get into the the price range on 11/13 for the SPY at $82.09 then we may see action up to $90 which would be a 10-12% move. If we get up into the $90 price on SPY I would go short again with SDS.

Gold was the big play on Friday going up $43. Below is a chart of the GLD ETF. All the miners were up big like AEM, GG, HMY, GOLD, IAG, ASA, RGLD. I think gold will run up to $810- 850 then pull back to around $760.

The major indexes climbed up to election and sold on the news after Obama won. Then we sold off Wednesday and Thursday on strong volume which I did not like that much even though I profited from it with SDS. I went long again on Friday but the overall volume was not strong enough for me. This makes it difficult to know which way we are heading this week but I still remain bullish. As of this writing the futures are all positive. China just pumped $568 billion into their market today and the Nikkei and Hang Seng are up over +5%.

I will enter into TAN a solar ETF on Monday near this pullback at $10.70. It wants to run up to $15 for a nice profit.

I also like 99 Cents Store (NDN) as it pulled back on lighter volume at $11 support. Below is a weekly 2 year chart showing the support and I think it will run up to $16. Put stops below 10.50.

The market lost 10% in only 2 days!!! But wait there is more…the downside volume to light.

Check out the chart of the SPY. I circled the positive high volume days. As you can see today was just people taking profits from last weeks run up. The selling volume is much lighter and the price touched $90 today which is support. I bought SDS 2 days ago at the turn sold them today at $88…a bit too early for an +10% profit.

The SPY, DIA, IWM and QQQQ all reached the high volume high support today so I bought SSO, QLD, UWM, and DDM and TGB. Let see if I’m right and get a turn back up.

With the elections on a few days away the market will rise higher on all the energy and buzz. Below are my targets for the week on the market ETFs to hit then we should get a light pullback if we are truely out of the bear market.

Spiders (SPY) - high of $100 -$105 then I would be cautious.

Diamonds (DIA) high of $97-$100 then I would be cautious.

PowerShares QQQ (QQQQ) high of $35-$36then I would be cautious.

PowerShares DB US Dollar Index Bullish (UUP)

The US Dollar is due for a pullback. As shown in the chart below of the UUP, friday’s volume was very low on an up day which means there are few buyers. I highlighted in the green circle where I expect the price to fall to. This should take about 5-8 weeks to get too. This means I am bearish on the US dollar which I posted on Oct 23. You can buy the UDN which is the bearish US dollar ETF

I think we have hit the bottom this year. Today with the MASSIVE down ticks the US index futures and Asia down almost 10% across the volume was still lighter coming down. Look at the numbers below from Yahoo Finance. This holds well for the bulls out there. I am long QLD, SSO, DIG, DGP and short on UUP.

All gains above 10% today except for GLD…not bad. Like I said in my last posting the market will head up this week as investors come back in for bottom picking in the oversold market.

A reader asked about DRYS and JASO which I think look like good buys. Of the two I like DRYS better on a technical basis for a trade. For a solar play I like ESLR better on a technical basis. ESLR is a buy here around 3.40 and wants to head up to $5 then $6.50.

DRYS has good support $20-22 and should bounce up to $40 then to $60 longer term.

This morning I placed a few limit orders that triggered and bought the following.

DRYS at $54.00

EXM at $22.61. I also saw a fellow trader at StockRake place this trade.

BG at $71.2

LVS at $40.70

I also took partial profits from AZK, VLNC and got stopped out of JNJ.

The market is still weak and not bottoming out as planned. I got stopped out of the DDM, SSO and QLD last week. But today I re-entered into the QLD at $70.60 with a starting position. It may be a bit early but closed higher on slightly stronger volume than last week.

Oil look toppy….like you have heard that before…..I’m taking a short position in oil using the DUG which is the Ultrashort Oil ETF. buying at $28.40

Like I posted yesterday CPST rocketed higher today up +10.85% on after an analyst gave it a buy rating. That makes me happy.

RIMM broke out to a new 52 week high but on lighter volume. This will climb a little higher then pullback into the $125. If is does this on lighter volume I may pick up some.

Oil reached another new high which is ready to pull back. The best way to play this is to look at the XLE which is an ETF.

If you look at the weekly the XLE is climbing up on little volume which means there are few buyer. And when there are no buyers what should happen to the price? It will come down.

My call is that the XLE needs to retest the $78 price range since there is a lot of volume at that price. This is why I am entering in the DUG which is an inverse ETF on oil. I’m in at $30.50 and short term to test $33.96.

Capstone which I have fun trading is now breaking out of the $3.00 range with volume. I bought more last week at $2.94.

Look at the weekly chart below and you will see that it wants to run upt o test $4 to $4.50 next swing point.

CPST go go go……