VOLATILE DAY AT THE START OF A VOLATILE WEEK

Today had some wild swings but ultimately closed about where it opened. This might have been the last move up that I was referring to yesterday. I was expecting a move to around 1200. It is still possible, but the price action today seemed a bit more bearish. It was another day in which the market was up and the VIX was up. The S&P 500 has tried to close below its 10 day MA for the last four trading days. The buyers have still been there to push the market back up...although they do look like they are losing strength. I'm still willing to wait for the confirmation. The Fed is pumping millions of dollars into the market. There is a Wall Street phrase that says "Don't fight the Fed". This can't keep pushing the market up forever and the recent price action suggests that buyers are growing weaker...at least for the near term. I wouldn't be shocked to see one more push up to 1200, even if it is a brief move. Expect more volatility as we move into Wednesday and Thursday. If we do end up moving higher instead of lower, look at the energy stocks. There are rumors out there that oil could go to $100 a barrel. If this happens, many of the energy stocks will make (or continue to make) a run higher. I like VLO, BP, HES, EOG, and CNQ. Some of these stocks would need confirmation (a move back above their 10 day MA). I think that the coal stocks could also make a run. KOL, ANR, and PCX are bullish patterns that I like. I also like the COST chart for a bullish trade. These would be some potential trades if the market moves higher after Wednesday. If it starts to sell off in a big way, stay away from just about any bullish trade.