Nov 3

Weekend outlook for 5th November 2012 – Panic mode ON!

Markets more or less went EXACTLY as the roadmap I showed from last weekend report – first starting out with a market bounce – and then reverse to downside into end of week !

Here is the chart from last week:

So I’m going to follow this roadmap as I see it and if I’m right , the text book target for the decline IF and only IF we break below 1400 , is 1330 !!!

That is a major major drop and it could be moving very fast – so probably this is a week where I would like to see some “FULL BLOWN PANIC” in mkts as we could break dow jones 13.000 and SPX 1400.

My first downside target for SPX is however 1370-1380 – so if we break 1400 I would be looking at this level closely.

Also if we break MA200 on SPX , next target to downside is of course 1330.

All of these events IF it takes place – will make a BULLISH divergence on daily chart now – and this is indicated as bullish and therefore I think we could see a “BOTTOM” in mkts – yes — a BOTTOM , so if we get some panic selling sometimes this week , I would try to be a buyer on it , near my target areas.

1. UUP dollar broke 4 week HIGH , indicating more upside for dollar next week – this will put a pressure on mkts as I mentioned many times.

2. The top hs pattern I see on es futures – will take us down in a text book target to around 1320-1340 area , seems like a bit too much , but remember – its a SPECIAL week…….

If Obama gets elected , markets might very well sell off after – and then we have a CRITICAL Greece vote on Wednesday – so a very very interesting week imo.

3. AAPL as I said were a great short at 700$ , still looks like can go lower – however I’m now getting more bullish on AAPL in the short term, but I still believe a move down to 525-530 will occur before ultimate bottom on AAPL.


The conclusion is – the roadmap + pattern is so far telling me we really might to see EXTREME panic in mkts – a big flush down this week IF and only IF we break below 1400 neckline, we need a move below 1400 to confirm this , so watch 1400 closely early this week (monday/tuesday) – if we break below it I expect full panic in markets and this is a time where I’m getting interested to buy. As I’ve mentioned in last months that a top was in and a topping pattern was forming , this is now playing out. Also people getting a lot more bearish now , which makes me more and more bullish short term.

If we make a bullish divergence on indexes I will be going long markets heavy. If I believe markets will rally I will be playing small caps setups , so you need to be a member to see the setups short term we make. We catched HUSA this week which was a 60-70% gainer in 1 week + OCZ which was a 30% gainer.

Enjoy weekend!


Comments (3)

Add a comment

  1. Fatal error: Uncaught Error: Call to undefined function mysql_escape_string() in /home/customer/www/ Stack trace: #0 /home/customer/www/ MnglUtils::get_user_id_by_email('jeffxin@tx.rr.c...') #1 /home/customer/www/ MnglAppController->override_avatar('<img alt='' src...', 'jeffxin@tx.rr.c...', 40, 'mm') #2 /home/customer/www/ WP_Hook->apply_filters('<img alt='' src...', Array) #3 /home/customer/www/ apply_filters('get_avatar', '<img alt='' src...', 'jeffxin@tx.rr.c...', 40, 'mm', '', Array) #4 /home/customer/www/ get_avatar('jeffxin@tx.rr.c...', '40') #5 /home/c in /home/customer/www/ on line 9