MJTT

DXO  30 Day, 60 Minute

FAZ  5 Day, 10 Minute

SRS  10 Day, 15 Minute

GLD  60 Day, 60 Minute

STLD  9 Month, Daily

Keep FAZ and SRS in mind, but whatever you do, don't hold them into the weekend.  The short-term market trend (like it or not) is still positive and will have NO qualms of eating your FAZ and SRS weekend holds alive.  In this market, no news seems to be bad news.

Also, if the Economic Statistics for April start off poorly, it may not be a bad idea to hedge your bullish bets with a little GLD.  I enjoyed watching the demise of the gold industry this week, but I think we may find out next week April wasn't all puppy dogs and rainbows.

So, in conclusion, I'm bullish oil and don't care about any other sector.  I'll start caring next week when reality sinks into the $SPX.  I will say it once on this site loud and clear:

And now we come to today's action.  I am still holding JAVA, but I sold out of my UA position a buck off of the day's high ($24.50).  I take pride in these kind of swing trades, and I'm really happy I decided to get into UA on Monday's close.  The gain was a 13%, +2.73 gain.  JAVA makes me nervous as the Q1 Earnings Season goes into the bottom of the 9th with the bulls and bears tied, so I'll give it until the end of the week to pick a direction and then I will indefinitely sell out of it.  The position is small, and my stop is set @ $9.05, so I have no worries in letting this trade go if I have to.

All in all, this week has been pretty good so far.  I've been enjoying my Q1 swing trades and have been freeing up large amounts of cash in order to take out a couple of more swing trades prior to me sitting and waiting for a market direction to arrive post Q1 Earnings Season.  If you happened to take a look at the $UVOL to $DVOL ratio today, $DVOL took the upper hand but by an insignificant, fractional amount.  The tape is choppy to say the least, so as I've said in the past, I'm staying FLEXIBLE.

Before I begin with what I'm considering, here's the $SPX and VIX charts so you have an idea of where the market and its volatility stand technically:

Let's get into the real rant.  I want to see the firm statistic that specifically states that 75% of United States citizens want a full-blown Wall Street investigation.  That percent seems ridiculously high, but I wouldn't doubt that it has some substance (yes, I am giving that bitch the benefit of the doubt).  My insight, however, rests with the notion that if Wall Street gets a full-blown investigation by the government, then the Congress, Senate, and Obama Administration should get a full-blown investigation by either the Republican Party or Wall Street.

But come on now, Mr. Musso, how in the world would that ever be allowed?

Well, if we're truly a democratic society based upon the principles of our founding fathers, we'd realize that the Fourth Amendment (Search and Seizure) states that, "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."  I realize this is a single citizen right, but why not take the amendment outside the box a little?  The first piece of the amendment ('The' to 'issue') is what the amendment was originally drafted for due to the illegitimate searches held by British soldiers during the Revolutionary War, BUT the second half of the amendment ('but' to 'seized') gives legitimate searches the ability to be carried out through "oath and affirmation."  This country is run by the people and for the people, not by the government and for the government who will help the people through bullshit handouts.  The fourth amendment, in my feeble understanding of the law, gives Wall Street leaders the affirmative action to formally investigate the government's response to the problem if they get court orders.  It's a law suit, and it may sound absolutely ridiculous and insane but can and should be carried out if power gets into the wrong government hands.  

To tell you the truth, I'm sick and tired of this administration and what they've allowed throughout this financial crisis already.  Let's recap what the government has discussed over JUST this past week:

GLD  60 Day, 60 Minute

USO  30 Day, 60 Minute

DXO  30 Day, 60 Minute

Both DXO and USO seem to be setting up for a major, technical, bullish movement.  I would absolutely love to see this occur, for my largest position at this point is in DXO.  Both USO and DXO have been very stagnant and sideways this week, and trading them has been a rather large challenge.  Based upon the current inverse relationship GLD and USO have, however, I strongly feel GLD will pull back in the near-term.  The technical indicators have rarely lied to me thus far, and as always, the trend is my friend (even if I decide to hangout with the cooler kids like the iETFs sometimes).  Keep your eyes on this relationship, for if GLD receives a heavy enough volume distribution and USO/DXO receive a heavy enough volume accumulation, the tides may change and we may end up seeing $SPX 869 again, which would definitely put this rally in the midst of a large overbought scenario.  If all of this goes to plan, I will be able to catch FAZ around $8.00.

As I said last night, a continued pullback into the low $SPX 800's followed by a support hold and technical bounce could definitely push the market back into the high 800's in a matter of days.  When earnings season ends, we will FINALLY get to see where this market is headed.  Until then, enjoy your swing trading!

PS:  A refresher post on the RSI-FS%K Trading Guidance System will be posted this weekend, so stay on the lookout!

Now onto the $SPX.  Let's first take a look at the annotated chart I threw together about an hour ago in order to understand my current market outlook:

PCX  30 Day, 60 Minute

BTU  30 Day, 60 Minute

ACI  60 Day, 60 Minute

Keep your eye on these tickers, for it seems as though coal is about to move technically.  Volume is still a little chopped up for ACI, but I have a strong conviction that's due to the earnings report approaching quickly (this Friday).  

For tomorrow, I am concentrating on the EIA Crude Oil Report set to release at its standard time of 10:30am.  This is a large part of tomorrow for the oil industry, for a lot of pre-released information that was let loose on the TweetDeck tonight has the API Report being more bullish on the demand side for crude oil inventories this week.  In my opinion, anything below last week's 5.5 million surplus of crude oil barrels will be taken as a bullish sign.  Prior to yesterday's market travesty, I loaded up on DXO @ $2.60 on Friday before the market closed.  If there is bullish inventory news, I expect DXO to be back up into the $2.90-$3.00 range, but it's a total guessing game with energy tickers during earnings season.

Here's the list of Q1 Earnings Swing Trades for the rest of the week:

Most of the Weekly Watch List is yet again filled with energy and basic materials:

Shockingly enough, I'm actually positive today.  My SNDK gains cancelled out my TITN losses, and DXO pushing a couple of cents over where I bought it has also propelled my portfolio.  As stated last night, I missed my PCX buy in at the close yesterday, which upsets me.  I may scalp some PCX into the close today, for I'm expecting a bullish open that dies throughout the day tomorrow.

We are nearing the $SPX 860, which gives me mixed signals.  Any break above 862 and a solid hold into the close, and we're going to see 875.  At that time, I'll be adding SRS and FAZ in expectations for a healthy pullback.  SRS is a smart move in the nearer future because as I said last week, when foreclosures are seen picking up (as they were from the Housing Starts reported this morning) and re-defaults come back into the picture, you're going to see a mass buy into SRS.  You probably won't see this until AFTER Q1 Earnings, but you never know.  

Keep your heads on a swivel into the close, things are about to go nuts.  My thoughts?  There may be a buy frenzy due to GOOG earnings after hours, so if you're planning on going short into the close, PLEASE PLEASE PLEASE be cautious!

Enjoy the rest of your trading day, and look for me on the TweetDeck in the next hour.

With that said, GOOG earnings come out after hours tomorrow, and in my opinion, they're going to blow away the opposition.  Not many have talked about a better-than-expected scenario for GOOG yet, but I think GOOG is the only salvation included in the earnings reports if the market (and JPM) gets ugly tomorrow.

The setups today, however, were right under the noses of many traders off the open.  I, particularly, did not have the nut sack to take on such buys as UYG (holding S1, or $3.14, that was outlined in last night's chart) off the open, but I did manage to scoop up DXO around 11 o'clock this morning in anticipation of DXO getting back to the top of its $2.90 - $3.24 price channel it's been stuck in for nine days.  Tonight at the TweetDeck, @torbelum and I discussed with various other traders as to why he and I chose DXO for a pop in the next coming days.  My main reasoning behind my snag at $2.94 today was because even with our supply of oil being extremely high and demand lagging like crazy, DXO has stayed within its respective price channel.  This leads me to believe that as Crude Oil becomes a hotter commodity going into the next couple of months, DXO should increase in price like crazy.  Breaking out of the channel to the downside, however, will lead me to sell out of it and re-enter on the price dip.

In my technical analysis last night, I posed the importance of the 50D SMA in regards to the $SPX.  During today's choppy session, the $SPX tested the 50D SMA off the open, during the 10:30 to 11:30 time period, and during the 2:30 to 3:30 time period as well.  From there, the $SPX took off in a fit of fury (or stupidity) and broke the 20D SMA resistance as it nears the 860's resistance-wise.  Check the chart:

A good daily wrap-up of today's trading session is outlined to the "T" from last night's closing statement:

Going down the list, the Economic Data caused news-based trading today, making the tape a difficult and choppy one.  The day hit longs hard off the open and towards the close, with a couple of drives to the endzone but with no success (the failed bullish breakouts that occurred throughout the day).  The WTF Pattern then got called in to play quarterback with the 50D SMA playing tight end.  All in all, they connected for a pass at 3:00pm and celebrated their touchdown at market close.

Charts of tickers I'm watching closely going into tomorrow:

The Housing Market Index makes me want to trade SRS tomorrow, but I may hold off on that because of one specific technical bounce area that will no doubt come into play tomorrow.  This simple, technical indicator happens to be the title of my post tonight, so without further ado, the 50 Day Simple Moving Average in action:

SNDK  9-Month, Daily

First off, SNDK's chart is setting up for a large price move with any remotely good earnings report on Thursday (Disclaimer: I will be legging into SNDK throughout the week).  SNDK's financial structure is hanging in there, but is very similar to the financial trends it showed during the Tech Crash of '00-'02.  Although the company's cash to debt level is high for its industry, the company has a good amount of cash reserves on the sidelines.  The only thing that makes me a little nervous about SNDK is the company's growth trends.  Over the past three years, SNDK has put out poor growth rates that haven't promoted the company's good and innovative technology.  Sales lagged largely in 2008, and I have a feeling a lot of this had to do with the retail collapse that spawned from the destruction of the financial sector.  The company's turnover rate has been stellar, however, and this gives me hope for a better quarter than Q4, hopefully beating analyst expectations for Q1:

TITN  30 Day, 60 Minute

Don't forget, balance sheet reviews for INTC, SNDK, and BTU (as well as charts for these tickers) will be out tonight.  Enjoy your day, and eat up!

If you would like to see a chart of the $SPX, check out RaginCajun's site:

For now, I leave you with my current holdings and percentage allotment in each:

Crude Oil Inventories for the Week of 4-3-09 (Courtesy of Econoday)

In my honest opinion, that is nothing to cheer about.  The price action in ERX is a supporter of the information, closing +$0.75 with lighter than normal volume.  The ERX historical price action, however, shows a possible pop in the next couple of days:

$SPX  30 Day, 60 Minute

For all of you who are considering taking the SRS route, I have created three different charts that have different time spans and T.A. within each chart (I apologize for the last two charts, as they were created earlier this evening and were not available to be changed to a white chart background):