Market Jumps Early and Dumps Late

Crude Oil is trading up slightly pre-market, which may create some early buying interest in Energy stocks. Financials may be down early on a Citigroup downgrade of the Brokers, specifically GS, LEH, and MS. That's the pot calling the kettle black if I've ever seen it, but it's probably the truth, so C may have had to do the downgrade to maintain credibility. Note that GS and MS are on my bearish watchlist for the week, and that many Energy stocks are on my bullish watchlist for the week. If we get a gap up in Energy stocks this morning, I might be selling a little of my call positions.

7:45 am MT: I am busy culling out any calls that aren't Energy or Commodity related. I stopped COH for a .50 cent loss, or 17%. I stopped VZ for a .47 cent loss, or 22%. I scratched STP for a small .07 cent gain. I may enter STP again if it breaks the little Flag it's in right now. VMW looks like it could be a Rising Three Methods, so I'm going with it for now.

I am also starting to take a little profit in some Energy/Commodity calls. I locked and walked on the STLD calls for an .83 cent gain, or 21% profit. I locked in part of the XTO calls for a 1.00 dollar gain, or 32% so far. I locked in part of the WMB calls for a .42 cent gain or 19% so far.

8:25-8:35 am MT: I locked in part of the BG calls for a 1.22 gain, or 19% so far.

9:00 am MT: I sold some more XTO, which is now a 1.09 gain, or 35% profit so far. I sold part of the UPL calls for a .50 cent gain, or 14% profit so far. I also cleaned out my AXP calls for an .84 cent loss, or 34% on a half-sized position. I nibble back in to STP with July calls. I only picked up a 1/3 size position for now.

9:45 am MT: I sold some of my BHI calls for a .50 cent gain, or 13.5% profit so far. I also locked and walked on UPL for a .52 cent gain, or 15% profit on the completed trade.

Here are some strong bullish movers today: AMZN (I took this off my Bearish watch today), CAT, VIP, PXP, STP, CCJ, CSX, ETN, RRC, BA, SU, UNP, MEE, MUR, NSC, AA, and DO. There are more, but these are some of the bigger movers. The Dow is really being driven by CAT, BA, and MMM. I may look at one of those three for a potential trade today.

11:20 am MT: I locked and walked on the WMB calls for a .45 cent gain, or 20% profit on the completed trade. I locked and walked on the XTO calls for a 1.50 gain, or 48% profit on the completed trade. I locked and walked on the BHI calls for a .62 cent gain, or 17% profit on the completed trade. I'm all out of the Energy and Commodity stock trades from Friday, except a little of BG, which I will probably take out later today.

12:00 am MT: Traders are taking some profits right now, and some stocks dropped pretty quickly. There's nothing quite as exciting as a a dog pile in and a dog pile out..... There isn't anything huge going on yet, but I sold STP for a break-even trade, and I sold the last BG as well. The final tally on the BG trade was an .87 cent gain, or 14% profit.

12:15 pm MT: Watch this selling closely. This may be it for the short-term upswing, just like I was warning for several days. I was looking for Monday afternoon or Tuesday morning as the possible end of the swing, and it may be happening right now. It looks like the Lab Chart Technician rang the bell again, and all the Monkeys took their pellets and went home. Look no further than Big Tech for the intra-day selling, and that, of course means our favorite cult stock AAPL. But this is going across a lot of sectors. After-the-close post: It looks like some cautious comments from SNDK acted as a catalyst for the profit-taking. I think trader's were just looking for an excuse anyway.

1:45 pm MT: I bought half-sized put positions on MOS, CF, TRA, MER, and HPQ. Other puts that look intriguing, but I didn't trade: ICE, LM, MON, POT, and OI. Of the call plays that I was looking to possibly enter, the only two that even put a blip on the radar screen for me were AMZN and BA, and I'm not doing either right now. The market may decide to pull back now, possibly for another couple of days, we shall see.....

4:30 pm MT: Market Wrap: Well.....I not only warned of a possible topping out on the short-term upswing, but I traded it that way live, in front of you, all day long. If you want to know the difference between who's real and who isn't, see who is willing to not only analyze the market, but to trade it live, right in front of you. And then watch to see if they do it over, and over, and over again.....day in and day out, week in and week out, month in and month out, and through all market conditions. I could fill up the Grand Canyon with people who "teach" trading, and are so called "experts." But let's see them put the rubber on the pavement every day, every month, under every market condition. I'll let you in on a little secret. The ones that do it for real, and really show you how, that's less than 1% of the people out there.

Anyway, I diverge.....The Dow and SPX threw Shooting Stars today. The Dow and SPX climbed one Shooting Star in this current upswing, they are unlikely to do it twice. Anything can happen, but we are likely headed for a short term pullback. The Naz is at an important short term support point, if it drops below 2,500 it will break a short term horizontal and diagonal trendline, and will likely head for the 20dma around 2,460 - 2,465. As for the SPX, a drop below 1,420 probably takes the index to 1,405. If the Dow drops below 12,950 then it's probably headed towards the 12,750 - 12,800 area. Perhaps the market will climb another Shooting Star and really go for it on the current upswing, but probability dictates that we are likely headed for a pullback. We shall see.....

I am still IT Bullish on the markets, but ST Neutral to Bearish. I will probably be waiting for a couple of days before I enter any new call positions, we shall see again.....