I have been expecting some kind of selloff  August or September, but I am still amazed by the panic action in equity this Monday.  I am buying into the selloff Monday morning and already make big gain on it. I expect the morning low will be held for at least one month or two,  market will bounce in next few days with some ups and downs.  My upside target for S&P 500 is at least 2000 by next week or later this week, and possible go to 2030 sometimes next week.

There are a lot of headline about Monday morning's flash crash. Actually this kind of action happens a lot of time in the past. The most recent one is August 2011, May 2010. Going back to old days, it happened in January 2008, April 2000, and August 1998.  All these cases the market bounces back big in a few weeks even with some twists and turns.

Last week equity market's pullback and volatility lasted only three days, and did the usual rally into resistance. I don't expect too much movement this week,  S&P 500 possibly will pullback to 2070 sometimes by middle next week.   The big movement might not happen until later August and earlier September.

Now market is very flat, not much activities. I can have time to do more research and watch closely for several stocks to get better trade setup for next big profit.  Only one week's quiet time, and I will wait for the next big action later August.

Even with today's big rally, I still have the same view as before that this rally will be sold. I expect S&P 500 will pullback again this time to 2030/2040 possibly by next week. There will always be some rally in between, and I will short it again.

For now I think the six year's rally from 2009 ends this summer. The whole market tops out this time, so in the next few years, the big money will be made on the short side.  Previous I thought S&P 500 might be able to get to 2300/2400. Now I think that might be too much a stretch, and the market price action give more topping signal than another big leg up at this time. There will be tremendous opportunities on the way down.

I see some good trade ideas developing now, and this time it could turn into some small fortunate. A few more days I will be able to get it.

All the action later last week confirmed my intuition that last week's bounce can't be trusted, and next downside action starts again this week. I expect this downside will be stronger than the one in later June/earlier July, and it could last two to three weeks. The best case downside target for S&P 500 is around 2010/2030, and it can drop more than 200 points if it's deeper correction.  There could be some bounces in between, but the strategy will be shorting every bounce for next few weeks.

Crude oil can't hold to $50, and for now I can't see how low it can go, could be below $40.  Interest rate will start to go down again with bond price up. Dollar will strength again with a short pullback last week. And gold finally come down to multi year low.  Equity market is the area I have the best edge and more easier to master. I am very excited to see how the next pullback will play out finally, or it could also mean another great buying opportunity before anyone can see it.

It's going to be fun and volatile month, and I love this kind of action which means a lot of trading opportunity and a lot of money could be made.

There are more bearish view now than before, from contrarian point of view, it could mean other way. I am a little bit hesitate now than earlier today.