PAY

PAY just hit $49- Bingo $50 would be a 10% gain, not bad for less than 4 days - Taking some off here and riding the rest

Finally

We finally hit the 2011 highs on the S&P. After an initial downside opening off Europe news, the market found its lows early and ratcheted higher. The 2011 highs in the cash S&P 500 were hit but couldn't hold there into the close. Breadth was flat and volume came in better on both the NASDAQ and NYSE. There was no celebration, no party poppers, no CNBC hats it was just a target being achieved. So now what? Now it's time to watch the market's next move. Will we reject? Will be go through it? Will we go sideways? Here's my thoughts. We have serious resistance around 1381.75, which is just about 10 points above Monday's highs. That's the 78.6% Fibonacci retracement of the swing down from the all time highs to the 2009 lows. While the 2011 highs may come in as resistance here, I expect that retracement level to at least provide a stutter step for this move. If we break right through it, I will be watching for a stall out and a shorting opportunity. The best thing for the bulls into that level would be a test and hold (or slight break) and then a wind up or pullback to break through.

VIX

Got long friday on that mentioned area I have noted before many times- I will be using this as a trading area for it- I went long 16.23 on Friday it is paying off nicely premarket. Wrote about my thoughts about VIX long below 17 eespcially 15 area so we will see. $15 would be my area to watch if we trade back down to this level. On the market we have still not reached 2011 highs level and I expect us to attempt a run at this area soon enough. Not posting a lot just too busy and I am 1/2 myself with my usual pre spring sinus issues.

Long

yesterday I went in long two stocks with decent chart set ups. PAY- $45.48 FSYS- $27.42 Not huge plays but look like possible nice set ups

VIX

Starting to build a holding of VIX at $17.50 and below.

$5 A GALLON!!!

Experts are predicting gas could hit $5 per gallon by this summer. GasBuddy.com predicts a national average of $3.95 per gallon by Memorial Day, with prices as high as $4.95 for the Chicago area and $4.60 for Atlanta by that date. The reason? A combination of tensions in the Middle East, big refineries on the East Coast shutting down, and big demand for gas in Asia. Prices rose 13 cents in the last month. In Chicago right now, gas is averaging $3.57 per gallon. It is $3.64 in Charlotte, N.C. and $3.88 in Los Angeles. The current average in Dayton is $3.23 per gallon, and the average in Cincinnati is $3.25. Well we will see soon enough I am not that convinced but one ex-CEO of a major brand did note in December we would see it so I would take his word over experts- This will turn into a political point so we careful in a election year what they will do to prevent it.

RAX

RAX blew out earnings and moving again to new all time highs- Great call, wish I held a piece over from last week. Oh well next I am eying two more plays which I think will go nicely like RAX and CLR. Stay tune