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.

There is a lot of movement in equity last few days, with straight down and up.   I expect a little bit more bounce in near term with some back and forth.  S&P 500 might be able to bounce back to 2110 sometimes next week.  Small cap index underperformed recently with deeper downside and litter bounce, and this underperformance can last a while longer.

I grow more cautious recently with the sale off last week, and it feels somewhat different to the ones in last few months. Even with the bounce I won't be able to trust it long. There will be some volatility for the rest of the summer, and August will not be a slow month this time. I see several great set up for some trades next month, and another money making opportunity is coming. So now I will wait for the price action in next few days to confirm it.

What a difference with only one week. Equity has another V-shaped bounce with Nasdaq going to new high. I think this bounce still has leg, but the next leg up will be much narrower. There will be some pullback this week, but any pullback will be bought, and any more meaningful upside will be sold.  I will use 2110 to 2140 as the range for S&P500 this week.

With technology stocks going up so quickly last week, it's difficult to find any better entry points at this time. If you want to chase, facebook FB is the stock I think still has plenty room to run.  I have $110-$115 as the upside target for it.   There is also some stock in my sell list, netflix and amazon has been running too high in last few months, and I will look for some opportunity to buy puts on it.

Even with equity's quick bounce last week, oil and euro has been down for the week. I think crude oil should be able to find some support around $50 at this time, and it's ready to bounce to at least middle 50's. Euro should also be able to bounce, but I don't have strong view on it.

I am amazed by the market's intraday swing these two days.  The high volatility will last for a few more days and weeks. In short term, S&P 500 might be able to bounce to 2090/2100, but once it gets there I still think it will pull back to below 2040 sometimes before the end of July. Maybe at that time equity market will finally bottom and can get sustained bounce. So for now I will short when ES go to 2090, and buy it when it drops to 2030/2040.  It's trader's market for now.