SSO stalled just below the 20 day moving average of it’s daily chart Friday. The Ultra long S&P 500 ETF closed near the high of the day. Move through that and the next breakout point is over 100. There’s a bullish cup ‘n handle now, which indicates it could occur.

With MSFT giving the green signal with it’s earnings, the break from a five-year base should allow fund managers a reason to buy stocks in what is seasonally a good time to buy stocks… November and December. What’s good for Microsoft, is great for Mister Softy’s suppliers usually.

On Friday, a trader made the comment to me, “I don’t see how the market keeps going higher with all of this negative news. The dollar’s shot, credit crunch news is negative, and billion dollar writeoffs are happening.” All I could say was, “It is what it is.” It’s too easy to get caught up in negative news that’s spun. I really try and not become biased, and focus on charts. It’s just too easy for a bull market to climb that Wall of Worry.

Have you seen this comment lately, or said it yourself?

“This market is crazy.”

I saw about five people post those feelings just yesterday. Monitoring one of the large mirc trading rooms (600 people), gives me an insight to sentiment. The price swings have definitely been volatile. I’d rather have this type of trading, than having it trendless. The market is what it is.

A few on my trading radar today include:

CWTR is perking up after getting destroyed this year. A gap is there to fill.

CCJ is moving higher now.

ULTA is a new IPO to watch.

I’m also buying long side Proshares ETFs. QLD (chart shows trigger buy, and stop under 200ma on a 5-min chart), SSO, and UWM were added today.

The scenario I suggested a few weeks ago is playing out. The Nasdaq has risen 200 points in the past few weeks, and is consolidating here. 3000 is doable by year end. Another rate cut should help keep this boat floating for a few more months. My target for QID is down to 31, and back to the 70’s in 2009. Today though, the market is what it is.