S&P 500

The monthly chart of the S&P 500 looks bullish.

Will it be sell in May and walk away? The sideways action over the past month could be consolidation before moving higher.

A break of 950 on the S&P should shoot stocks up to 1050 on the S&P rather quickly.

UNG

http://stockcharts.com/h-sc/ui?s=ung&p=D&b=5&g=0&id=0

http://www.futuresbuzz.com/natgaslt.html

Natural Gas is a great long term buy right now.

In the second chart you can see the volatility associated with NG. It is known for 100%-300% in a year's time. NG has been hovering around 3.50 recently, a huge tail not pictured in graph #2.

If we post a reversal here, you made a great buy.

My stop is just below the April lows

Memorial Day

Monday is the holiday, and tomorrow could be quiet. Last year it was a big down session.

Today we tested support on the S&P (close enough) and it held (again). We will get through it.

What was TenYear trading each day the past few sessions?

OIH
INTC
SRS
URE
FXP
FAZ
FAS
LNC
BAC
AUY
UCO

I leave whoever is reading this blog with this:

THE MARKET DOES THE MOST OBVIOUS THING IN THE MOST UNOBVIOUS WAY

Markets are all mixed up

As I write, the DOW is up over 200 points and the S&P is over 905.
One could argue what a wonderful shorting opp today is. After all, where did this rally come from? On the other hand, the bulls are saying, "Hey fellas, we have held 880 and the government is saying that the worst is over!"

Here is my stance:

The primary trend is still down (we are still in a bear market). Resistance and support are both being hit on a daily basis. Keep your eye on the dollar as it hovers around support. If it holds, equities will fall. If it doesn't hold, I think we are in for a monster rally over the coming weeks.

Stay nimble.

900 Level S&P

876-880 looks to be the next support under 900

Much needed Weakness is Here

Waiting for this weakness was like waiting for a much needed rain in the summer. We all knew it would eventually happen, but we just didn't know when. I'm using this weakness to scalp some shorts intraday primarily.
Surprisingly the volume has been low on this pullback. I'm also rapidly going through charts to find long setups.


good luck out there. Its OPEX week so don't be surprised to see lots of chop.

This Market Smells

Everyone was afraid to buy on the way down.

Everyone is afraid to short on the way up.

Fundamentals have not changed. We WILL retrace down. But when....

if anyone has a crystal ball, leave it here please.

Is Everybody in?

"Is everybody in, the ceremony is about to begin. Is everybody in, the music is about to begin......
This is the end my beautiful friend
the end.
This is the end my beautiful friend
the end."

..the words of the late Jim Morrison. The market has me singing this. I don't know why, maybe because this is the biggest rally in the shortest amount of time that the stock market has ever seen.

I keep thinking that once everybody is on board, the selloff will begin again.

I sold many longs today. Maybe the rally will continue, we could argue to as high as 1100 or even 1200 on the spx. Keep your eyes open.

What I'm Looking At

I'm watching or trading long the following: (I rarely trade short a stock)

ENER
XLF
IYR
EXPE
RYL
VMC
STZ
ACL
JEC
ACI
ZNH
SMG
DV
NEM
LNC
BAC
OIH


--take a look at those charts and see if you can't find a long entry somewhere