A quick update....

Markets made a strong upward movement at the beginning of the new year, but now they seem to pull back. I was expecting the markets to top last week or at the most to give a final throw off (exhaustion gap up). EURUSD was moving in a corrective manner up to 1.3050 and then markets suddenly remembered again the debt crisis in europe. Now the rest of the markets fall again because of the european debt crisis. Entering long positions is very risky in my humble opinion. I see the downside has more potential and is preferable than betting on the upside.

All in all short positions with a daily close stop above 1283 in SP500 is my preffered strategy. EURUSD still in downward trend....still giving profits. Stops around 1.3050. More to come next week.....

Update 01/06/2012
My stop of 1283 daily close for short positions in spx is very fragile. Personally I believe the markets are topping and it takes time. I have a tolerance level around 1300 but more factors and not only the price of spx will determine if I hold on to my short position. The last 2 months you can see in the blog we made some good profits from forecasting the move in spx and in euro and in other european markets. This makes me more tolerant to sacrifice some winnings in order to support my position. Someone with less tolerance than me to this upward movement should either place a stop at the last high or wait for a clear impulsive down move and short the market at a lower level. Theoretically speaking a double zig zag could have ended or is at its final stages. More details and charts on Monday....have a nice weekend.