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Whipsaw Mania

Yesterday and today proved to be almost incomprehensible.

Whipsaw was the norm;  as if something foreboding was going to happen. 
8 banks on the hook now instead of just Goldman Sachs? 
Another meltdown mania on the works similar to the last 2 weeks?

-   img37.imagefra.me/img/img37/6/5/13/aarc/...

The bears are not out of the picture after a 4 day ramp-up rally.  At least not yet. There is still the potential Head and Shoulders pattern on the daily.

-   img37.imagefra.me/img/img37/6/5/13/aarc/...

This is still a low confidence HnS since the left shoulder consumed 14 days while the ramp-up was only 4 days going into 5 days today.

For the bulls;  there is still a ray of hope:

-   img37.imagefra.me/img/img37/6/5/13/aarc/...

The a-b-c has a potential c-wave target of 1151.50. 
1150 is the daily price line support.  IF 1150 fails badly, then it will encourage the bears to keep shorting the markets.

XLF is very weak and failed to produce higher high yesterday and today. 
Thus it is a prime candidate for shorts.  Add the SEC banks probe news today, and a meltdown is the highest probability scenario:

-   img40.imagefra.me/img/img40/6/5/13/aarc/...

I bought SDS early this morning using a divergence buy technique on 15min chart and also bought FAZ when XLF reached it's 2nd or b-wave up on the 30min chart.

Sold 1/3 before closing time and will sell another 1/3 load once the c-wave target is reached.  Will keep 1/3 just in case Spx and XLF melt down badly.