It has been challenging to get some wins off short position with this market that still refuse to retrace.

Here’s another setup that I am looking to short.

We can see from the chart that :

1. A ‘W’ is forming on $GS . However, it is facing resistance from the Chikou Span way back from November 2011.

2. At this moment, this is not a good time to establish a long position as it has run up by so much. We can see from the RSI that it is reaching ‘overbought’ situation and the Force Index has shown that it is in bullish territories for quite some time.

Next, we can see from the Weekly chart that $GS is still trading below the kumo; a sign that it is still bearish.

We can also see that the Chikou Span is about to hit the price level ‘forming the W’ follow by the Tenkan sen and Kijun sen on the Weekly Chart.

I will look for a short vertical call spread for $GS and hopefully, it goes as planned.

From the above Ichimoku Daily Chart, we can see that EUR/USD fails to breakout of the thick kumo resistance.

This reflected the issues that the Eurozone is facing.

However, we might want to take note that the leading kumo is showing possible signs that the trend may turn.

Do note the support from the Tenkan sen at around 1.305

We can see how it corresponds to the support in the 15min chart from the Chikou Span

My short term bias is bearish on the Euro and believes that the level will be breached.

Vested with short position.

I am still short on the market and is losing money now.

However, I am also wary of what’s going on with VIX.

VIX is now around $18.31 . The lowest from the chart is $14.27 in April 2011.

In July last year, VIX spike from $14 all the way to $40 within one month.

Greece was supposed to have finalised various agreements since last Friday and ‘legalised’ by this Monday.

That timeline has come and go. There is still no agreement in place. The losses that investors have to take is still not known yet.

If one has not established any Long position yet, I don’t think this is the time to go in.

Judging by the movement of the market, I maintain my view that the market can’t go up further by Feb. Keeping my fingers crossed.

EUR has rally against the USD to the point that the Tenkan sen may cut Kijun sen to give a bullish confirmation.

However, at this point, there is still no bullish confirmation signal from the Ichimoku chart.

In fact, we have 3 signs that EUR/USD is poised to drop.

1. Chikou Span resistnace at around 1.305

2. The EUR/USD having rally from the bottom of 1.26 is about to hit the resistance level set by the Chikou Span. We can see how EUR holds at that level before its ultimate drop to 1.26 .

Given the weak economic conditions in Europe itself, the chance of EUR strengthening is very low.

3. Kumo resistance ahead. We can see that a thick kumo is waiting ahead to provide the huge resistance. On top of that, the kumo is still bearish and there is no indication from the leading kumo that the bearish trend has change.

I think this is a fairly good setup and will be looking to establish a bearish position.

Let’s review the chart.

1. We can see that on the Ichimoku Daily Chart for XLF that it is bumping into the resistance level at $14.

2. While the Daily Chart shows that XLF is in bullish territory, the last 3 candles is not showing great strength. The candles are suggesting that XLF may turn from here.

On the Ichimoku Weekly Chart, the setup is clearer.

1. Like the Daily Chart, we can see that XLF is hitting the resistance at $14

2. The key difference is XLF is still bearish on the Weekly.

3. In the coming 2 weeks, XLF will be slamming into the kumo resistance and the flat kumo top is suggesting that XLF has a higher chance of consolidating below $14.

I will be establish a SHORT CALL spread on XLF.