So far so good – we pretty much rode the shorts down and then began buying long in the markets at our target 1290-1300 which we precicely indicated was a short term target. Markets bottomed at 1292 so we pretty much hit that (for now) ,, and since then markets has been moving higher and eneded the week at 1317.

I still believe that EU and all world markets topped out at March 2012 and made the long term top in that timeframe before a 1-3 year bear market , I still stand by this call. Also I believe that a major crash of 2012 is underway , beginning this summer 2012- so be prepared ,, something very nasty and ugly will come – not sure what will trigger it yet , maybe Greece ? Maybe something else ,, but I think its coming sometimes this summer in June/July.

Lets take a look at the long term view follow up and the short term follow up.

1. Nasdsaq so far reached the MONTHLY 50% fib retracement + channel trendline up higher and having monthly bearish divergences like SPX and all other major indexes. This spells BIG trouble for the future ,, and dont count me wrong – but I think it will turn out very nasty coming time from here. I still stand by the call we made a VERY LONG term top in March 2012 ,, most of EU markets topped out in March and NYA in US did the same , also TRAN.

2. VIX having MAJOR MOnthly chart bullish divergences ,, looking very good for a big move higher in the coming months or half a year.

3. SPX monthly chart having a MONTHLY bearish death cross with MA50 going below MA200 ,, not seen over the past 50 YEARS ! It will happend in June or July – and those months should get very ugly for markets…..

4. FTSE and TSX as I mentioned earlier this year – so far so good ,, following the plan ,, look that both topped out exactly in early March as the plan were , that markets should make a long term top in March. I stated early this year that markets were very close to a very long term top , were a bit too early – but so far its standing true , nearly all World markets topped out in March 2012 so far – and have yet to see if they break new highs ,, but I dont think we will – this is the start of a long term bear market.

5. Short term I think we will rally some more ,, before another leg down if I’m right ,, so I stay long markets since 1290-1300 area and looking for some more upside before we flush furhter down.

Remember 2 months ago I said ,, there will come a time , when you will pray for a bounce ,, but never get one — last weeks have made this true ,, but imo this is just the start you havent seen ANYTHING YET ,, so as EVERYONE were just bullish 2 months ago and early this year I said ,, be careful , this wont last and it will turn out to be nasty for this year 2012 , so lets see there are still half a year left and anything can happend.

Conclusion: All in all – my big trading plan still on track as most EU markets topped out in March 2012, NYA US topped in March 2012 and so far many markets been falling a lot since then. I’m thinkig this summer 2012 will get truly nasty ,, something BIG will happend – which will turn markets out to hysteria and true panic , it will be dangerous , violence. Lets be prepared for this. On the very short term we might rally some more ,, but I’m 100% ready to load up the truck with shorts again when the charts tells me to do this.

See you all and have a nice long weekend — see you all on Tuesday!

Chris