The broad market went up and closed down on higher volume which means distribution. The SPY looks like a good short or buy the SDS. In yesterday’s post I mentioned I went long the FAZ and ERY which are 3x short financials and 3x short energy. The chart below shows the confirmation of selling on higher volume today in the XLF. Now let’s see if we get volume at the swing low (I circled in red) at $11.10 on more than 193 million shares then were heading down to $10 range for support.

I also liked the action of the Russell 1000 (IWB)  instead of the Russell 2000 (IWM). The chart below shows high volume selling today. Price went above yesterday’s high and close below is on high volume - downtown we go. I will enter into the BGZ in the morning which is the 3x bear of the Russell 1000.

The SPY went up on light volume today and closed below yesterday. Price went into the May 7th big volume down day and 317 million versus 205 million. There is no buying volume. Market is coming down.

XLE (Energy ETF) also confirmed that we are coming down. Price went into Feb 10 massive down day with 56 million and we went up today on 16 million. Which way is the buying pressure? Heading down. I entered DUG (2x Short Entergy) and ERY (3x Short Energy) today.

Dug should test $22. ERY should head up to $35.

Also financial look very weak and I entered into FAZ which should head up to $10.

As I posted today on Twitter I sold WYNN, ESLR and LVS and bought DXD and TZA. I took profits and put them in to some 2x short ETFs.

Below is the SPY which shows the pullback today on slightly higher volume than Friday. We should pull back into 81-82 and if the volume is around 250 million than I would buy long. For now I am short the market.

Below is DXD (2x Short the DIA) which I got in at $54.25. First target is $59-61.

I am still holding on a core position in DRYS which I took partial profits on March 27. On Friday it popped big time up +29% in one day. GNK also in the shipping business up +16%. DRYS is on it’s way up to $17 with little resistance with the huge sign on strength on Friday.

SPY has shown great strength during this short covering rally. I suspect we should pull back this week to around $82-83 where you can buy more if the volume is light. Then SPY will head up to $92.

The market had one of it’s most powerful up moves in many months with 6-7% gains in the broad market. The SPY had a 7.18% move forming a V-shape bounce. It’s too late to buy into the SPY for a trade and I’d like to see this pull back to $76-78 but first it might run up to 87. The risk to reward is not there yet - be patient.

Today I did enter FEED and ANR which are both commodity stocks. ANR has been consolidating for 4 months with a little sign of strength Feb 2 and March 19. Target price of $24-26.

We had great price action after a miserable down week the prior week. I entered into SSO on March 4 and I bought more on March 10 as the volume retreated on the 9th and strength coming in.

This is the SPY on a weekly which shows nice price and volume last week. I do expect a pull back and hope that it’s on lighter volume.

This is the daily of the SPY which looks like it will pull to $72-74 then buy this for a bounce up to 82-85.

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.

We are not fully oversold but I stepped into the market and bought SSO (2x SPY) going long the SPY. We are at confluence area and volume dried up hitting the November 24 strong up day. I also like the DXO for a small trade as oil is oversold.

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 pulled back last week buy had a nice rally on Thursday. Below is a chart of the SPY which shows big price spread on Thursday on big up volume. Even though Friday we closed down we ended up inside the trading range of Thursday which is positive. I expect the SPY yo climb up to $95 this week then maybe $100.

Below is the XLF (Financial ETF) which reacted the same way as the SPY - the financials are a large portion of the SPY. I think the XLF will also test the $15 price then $17.