Pivot Points That Work

While the Dow was trying to stay above 13,000, we had our seat belts fastened as Crude Oil rocketed above 106 using our SmartLevels Support and Resistance lines as our guide. See the chart below.

The rising crude oil prices are starting to be reflected in the price at the gas pump. There is a real question whether a society that prospered under cheap energy prices can continue to prosper when energy prices are disproportionally higher. Time will tell.

The Eurozone came up with the final plan (this is it) to bailout the Greeks. They are going to use their collective debt to repay the debt of the Greeks. To solve a debt problem, you always use more debt. Isn’t that obvious by now.

While the EURO was bolstered and the dollar sank, our Gold position is doing just fine thank you.

DSK is in custody again with another sex scandal. Is that a bullish or bearish signal? I forget.

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While the markets trended higher, we labored at moving our account balances higher using our SmartLevels and our unique implementation of Market Profile. See the chart below.

The S&P 500 is at its highest level in 9 months.

The weekly initial jobless claims were lower than expected.

Housing starts also improved in January.

General motors reported disappointing earnings but had impressive revenue figures and increased market share.

No need to stop the party when the punch bowl is half full. Or is it half empty? At any rate, no need to let the pending Greek default slow us down.

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Still trying to shake off the Linsanity from Jeremy Lin’s phenomenal rise, we saddled up to the computer screen and found some trades using our SmartLevels Pivot Points. See the chart below.

Industrial production for January came in under expectations. If you include all the manufacturing that China does for us, we’re doing great!

There was a lot more volume in the market today than there has been recently. What?! Do I have to explain everything?

China is reducing its holdings of US Treasuries and increasing its lending to Latin America. In response the Republicans are all over Obama’s campaign manager for his chimichanga tweet.

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As tensions with Iran mount and put upward pressure on the price of oil, we feel no pressure because we are using our SmartLevels Day Trading Strategy. See the chart below.

US Warships are sailing through the Straits of Hormuz. Hopefully, they are prepared to defend themselves against Iran’s fleet of rubber boat bombs.

US retail sales rose less than expected in January. Lower auto sales seem to be behind the lower sales numbers. Hmmm… That’s odd… The government has restored the American Auto industry to it’s days of glory.

Obama’s new budget has been released. According to White House figures, excluding TARP, the deficit spending during Obama’s four years in the White House is estimated at $5,170,000,000,000.00. A family of four shares $70,000 of that burden. Can you say Costa Concordia?

In a very, very unrelated story, the dollar staged a strong advance today.

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Even though we were unnerved by the violence in Greece overnight, we put our heads down and focused on finding some great trades using our SmartLevels and Technical Analysis. See the chart below.

The market really liked the austerity measures passed by the Greek parliament. It was either that or all the traders were still stoked from the Grammy’s last night.

The Grammy’s were great! We really owe so much to people who play instruments and sing songs. They give their lives to ensure we can all live in freedom and liberty. Oh! Wait a minute, it’s Soldiers, Sailors and Marines that do that. I can’t wait for their awards show!

Today Moody’s downgraded Italy & Portugal and changed it’s outlook to negative on France & the UK. Who could have seen this coming?! That will never happen in the US!

A technical glitch stopped crude oil trading on the CME towards then end of the session. After that, crude oil climbed even higher. I’m going to have to dust off my technical glitch indicator and clean up the Prius.

Tip: If someone riding a motorcycle puts a magnetic bomb on the side of your car, you probably should have paid extra for the demagnetized paint job.

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We put aside our excitement about the Grammy’s this weekend and concentrated on finding some great trades using our SmartLevels and our unique interpretation of Auction Market Theory. See the chart below.

Since October, the earnings growth rate has been in a sharp decline. However, over the same period, the stock market has been on a significant incline. Hmmm…

It turns out that ObamaCare is forcing employers, most notably the Catholic Church, to provide free birth control to it’s employees. We’re almost there! Now all we need is for the government to buy dinner and pay for the movie.

So the government has asked the banks to put all that bailout money to work and bailout home owners who were foreclosed on. By the time the $25 billion settlement goes through the hands of all the crony capitalists, it will put $2,000 cold hard cash in the hands of those who lost their homes. It will take about 3 years to receive your claim. However, if things keep going in the same direction, in 3 years, you will probably be able to buy a nice replacement home for $2,000. The government is always thinking ahead.

Back to the drawing board on Greece…

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After a pop up, Crude Oil was going nowhere today, kinda like the Greek economy. However, the oscillation created a ton of trading opportunities for our SmartLevels and Order Flow Trading. See the chart below.

They have finally solved the Greek crisis! This should last for at least a couple months until the agreement falls apart because no one wants to own the pain required.

Today there was much rejoicing because Grandma will no longer be assumed to be a terrorist by the TSA.

The NY Mets Owners are asking the Supreme Court to help them get some money back from Bernie Madoff. There is nothing more tragic than when one crony capitalist swindles another crony capitalist. There is no more urgent matter for the Supreme Court to deal with. I was short changed at a fast food restaurant this week. I’m hoping the Supremes will do me a solid as well.

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
-Ludwig Von Mises

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In the midst of the Super Bowl rally, we found quite a few trades in Crude Oil using our SmartLevels Support and Resistance. See the chart below.

The official unemployment number declined steeply today to 8.3% using the most unmanipulated process possible. Obama is going to be able to ride this sweet decline to victory in November! His reinvigoration of the FREE market has really begun to work. The government has FREELY helped save many bankers from market forces, FREELY stimulated the bank accounts of crony capitalists, FREELY started a motor company, FREELY taken over the health care system and FREELY printed tons of money. Let FREEDOM ring!

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Now that Madonna has promised to keep her clothes on at the Super Bowl, we could relax and focus on trading the Russell 2000 using our SmartLevels Market Profile. See the chart below.

Today Bernanke warned politicians that they should not cut the deficit too rapidly. He’s so smart!

Monthly jobs report comes out tomorrow morning. Stand by for heavy rolls.

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While Facebook is about to make 1,000 millionaires, we had to learn to be happy with a few hundred here and a few hundred there, trading Crude Oil using our SmartLevels Pivot Points. See the chart below.

The Case-Shiller survey showed that there was a decline in US home prices in November. OMG! Who could have predicted this! What a wierd recovery…

Exxon Mobil’s quarterly profit was $9.4 billion. How is it that evil corporations can continue to make a profit selling a deminishing resource?

The US Debt increased to $15,356,140,000,000. Nothing to see here folks, move along…

US consumer confidence slipped in January. In an unrelated story, ADP Employment Change fell short of expected 200,000 increase in private payrolls.

Michelle Obama said that we have made remarkable progress on the economy. I think the captain of the Costa Concordia said something very similar to his female companion right before they hit that rock.

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