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.

The US Dollar Index looks toppy against the EURO. Below is a chart of the UUP which is the long US Dollar ETF. As you can see there is big volume at the low and we are going to higher highs on lighter volume. I went short this ETF by buying Dec PUTS. If this holds true then commodities will go up like gold, steel and oil.

Below is a chart of the DIG (Ultralong Oil & Gas ETF) I put in a buy order at $25.75 looking to go to $40.

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.

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.

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.

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