Markets so far played out exactly as pointed out in the last weekend report with a move down to my target 1370-1380 on SPX – this has been my general downside target for the past weeks of this correction and I believe it is now very likely that we are making a bottom in this area.

1. VIX and VXO having a bearish divergence on daily chart telling me that fear index is topping , which means that markets is bottoming.

2. TLT has been moving higher as called past weeks and this has set a pressure on mkts – right now TLT begins to look toppy which gives better odds for markets to go up again(when TLT moves down)

3. Dollar has so far gained a lot over the past 4-6 weeks as I called , dollar likely upside and this would put a pressure on general markets – so far this has came true and I believe that dollar is near a top right now and euro is near a bottom. With euro near a bottom , this means that markets is also very likely to bottom in this area.

4. AAPL as called at 700$ as a great short I’m thinking is a great buy now finally , its down from 700 $ to 530$ and I believe AAPL is a good buy in this range 525-555$ as mentioned. With Apple soon moving up again , mkts will follow higher.

5. COMPQ more or less hit my downside target too as called 4 weeks ago ! So I’m bullish on tech stocks again in the near term.

Conclusion: All in all – the call for a sell off in markets occured + the panic move down I called for before we saw a bottom. SPX had its worst week for this year I think , and this is what I like for a bottom. I sold ALL my shorts from 1463 when I went short and took profits at 1388 and 1370-1380 area. Now I’m long markets again as of this week and looking to “buy the dips” instead of sell the rips like before.

Seasonality also telling us bullish from now into new year so statistics in favor of this.

I’m going to play lots of small cap names in the near future and if you wanna play them with us – get into our room on site where I post these picks.

Congrats to all shorts over the past weeks who held it with me all the way down ! Time not to be greedy but take profits on shorts if you already havent.