Criteria Met

My criteria that I mentioned yesterday evening for making additional purchases of DXD, QID, SDS, and TWM were met today.  For a review, the criteria were as follows:

1. 3-day EMA > 10-day EMA
2.  Willams%R -.79 or better
3.  PPO turns positive.

By the time that the criteria were met, the hourly charts for all four inverse indexes were already overbought.  (I use the hourly charts to time my purchases and sales, once a signal is given on the daily charts.)   However, I did take a position in UUP.  See the following chart:

For tomorrow, I would anticipate that early selling to continue (Futures as of 10 PM CST are down 25 points on the DJIA.)  Then, the market should be make an attempt to rally; and then sell off going into the close.  (Of course, that would be in a perfect world.)  In the rally attempt, I would like to see the four inverse indexes move from overbought to oversold on the hourly charts.  If that occurs, I would definitely add to my positions.  

I would also anticipate that the so-called "Plunge Protection Team (PPT)" to be very active if the market gets out of control on the downside tomorrow.  As I have mentioned previously, never underestimate the power of the FED.  By the way, the Fed announced after the market closed that it will buy about $18 billion of Treasury debt in nine operations from August 17 through September 13.  Folks, that is nothing more than monetarizing the debt, which is something that Bernanke said the Fed would never do!  You just can not believe anything this guy says.  This is the same Bernanke that said the subprime problem was will contained.  For those of you that forgot what he said, listen and watch the following YouTube video: