Just before the three day break, the specialists had the opportunity of getting rid of many short sellers. That is why we had a sharp rally on Friday on the shoulders of a short term rally in oil. This may continue today but it will be followed by more decline. Financials, energy stocks and Natural gas stocks and Russell 2000 will decline the most. Travel related stocks will also go down with more and more chaos around the world.
Swiss Central Bank's 30% upward movement of Francs relative to Euro & other Currencies is causing havoc in foreign exchange markets. Many of the foreign exchange brokers (See FXCM) will go out of business and other trading firms will see heavy losses in their foreign exchange departments.
The decline will start soon latest by tomorrow and market will make new lows soon below December lows and then below October lows. Basically all of the gains of November and December have been wiped out in the first few days of January. Much bigger declines are coming soon as the global economy is weakening Interest rates are going down to new lows because of world wide deflation in commodity prices.
Dollar is making new highs against most currencies and Euro is making new lows. That is why in terms of Euro, the German market made a new high but in terms of dollars DAX is not even close to 2007 highs. Euro zone Central bankers will probably start a new QE program, each country in euro zone buying its bonds starting next Thursday.This will not have much effect on growth in Euro zone countries. It will only weaken Euro further.Many countries in Euro zone are in depression with unemployment above 10% and going much higher.
Chinese market dropped almost 8% after the Chinese authorities banned Chinese brokers from opening new margin accounts for the next 3 months. Tuesday the Chinese market went back up 2%
DJI Decline will start again
SPY
XLE Going lower again as we expect oil to go as low as $33 to $35 or even lower
ERX Going lower
ERY Going Higher
GLD Going Higher Central Banks in USA & in Euro zone want Gold to go down . So be cautious here
NUGT Going Higher
UVXY 3X volatility going down near term but going higher soon
SVXY 1X inverse Volatility going up near term but long term going lower
UGAZ 3x Natural Gas Bull going down sharply because of warm weather
DGAZ 3 X Natural Gas Bear Going up sharply. We own DGAZ in our Natural Gas Motif
RSX Russian market ETF Gave a short term Buy signal
RUSS 3 X Bear Russian Market
RUSL 3X Bull Gave a Buy signal short term.
FXI Chinese Market ETF Long term going much higher
YINN Chinese 3 X Bull Long Term we are Bullish on both Chinese and Indian Markets
YANG 3X bear Chinese market Long term going lower
Swiss Central Bank's 30% upward movement of Francs relative to Euro & other Currencies is causing havoc in foreign exchange markets. Many of the foreign exchange brokers (See FXCM) will go out of business and other trading firms will see heavy losses in their foreign exchange departments.
The decline will start soon latest by tomorrow and market will make new lows soon below December lows and then below October lows. Basically all of the gains of November and December have been wiped out in the first few days of January. Much bigger declines are coming soon as the global economy is weakening Interest rates are going down to new lows because of world wide deflation in commodity prices.
Dollar is making new highs against most currencies and Euro is making new lows. That is why in terms of Euro, the German market made a new high but in terms of dollars DAX is not even close to 2007 highs. Euro zone Central bankers will probably start a new QE program, each country in euro zone buying its bonds starting next Thursday.This will not have much effect on growth in Euro zone countries. It will only weaken Euro further.Many countries in Euro zone are in depression with unemployment above 10% and going much higher.
Chinese market dropped almost 8% after the Chinese authorities banned Chinese brokers from opening new margin accounts for the next 3 months. Tuesday the Chinese market went back up 2%
DJI Decline will start again
ERX Going lower
RUSS 3 X Bear Russian Market
YINN Chinese 3 X Bull Long Term we are Bullish on both Chinese and Indian Markets
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