Markets are primed to pullback from this amazing run up . The SPY pretty much went straight up for almost 4 weeks. It’s having difficulty breaking the $100 mark and down volume is picking up the last 3 days. Time to go short with the SDS.

Same with the QQQQ, it’s ready to pullback having tested the $40 price point and now should go down to test $37. I entered into the QID today.

Today’s action was sleepy on the overall market with little movement. In addition we are over bought and ready for a pullback.  I decided to go long the TLT by shorting the TBT…huh?? Yes, I shorted the double short which means I went long….got that.  The TLT did not fill the gap which it may tomorrow so I am holding on.

I also went bearish on the S&P and bought the SDS which is 2x short the SPY. The chart below is the SDS which shows good support at $70-71. We pulled back on lighter volume and should head up to the $90-95 range. Lets see how the market pulls back this week.

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.

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.