What a brilliant week for our chatroom , we made money nearly each day of this week and had a brilliant week.

Markets sold off the most this week in 2013 and we got a little relief bounce on Friday , or as we can say “bearish backtest” on markets and made the oversold conditions short term , went to overbought.

If everything playing out as planned – then expect the sell off to continue and this week could be in a big way. As we most likely will break below MA50 on daily chart – then we should see some extra selling and everyone will then start to ask — WHEN DOES THIS CORRECTION END???

Well let me say , I still believe this is one large correction and we have just begun.

Transports forming a MAJOR topping pattern and a sell off likely to start.

TLT bonds about to break to new weekly highs and this would target new ALL TIME Highs = bearish for mkts.

Also we got EURO in a MAJOR bearish topping pattern on weekly and this could play out hard to downside in euro , so expect more downside in euro and another rally up in USD – this would put a pressure on stock markets.

Conclusion:

All in all – expect this sell off to continue and most likely we will see more downside into may – sell in may and go away. So I’m still bearish markets and will continue to hold my shorts but try to trade them both up and down short term.