I have to say, I'm both disappointed and angry. The gigantic bailout that the Federal Government is shoving through the system creates a series of winners and losers. Specifically:

Winners

• The CEOs and other executives of FNM and FRE, all of whom pull down seven-figure and eight-figure salaries and have pulled one of the great corporate heists in business history
• The lower-middle class blockheads that gobbled up real estate at sky-high prices, thinking they would be the next Donald Trump, who are going to simply walk away from their "investments"
• The shareholders of FNM and FRE, who have been spared a $0 stock

Losers

• All the citizens of the United States, particularly those who pay taxes
• Honest, hardworking people that got mortgages through honest means, pay their payment promptly each month, and have received no help or favors from anyone (I am pointing not-so-subtly at myself right now…..)

So the honest and hardworking folks are the fools. And the charlatans and crooks are the winners. And the entire country slips that much closer into oblivion with this travesty.

Gee, Tim, how do you really feel about this?

I have some s'mores to make, so this will be short (as a side note, no one makes s'mores like me – – – I am a zealot about the marshmallow being just right; God help you if you are with me and your marshmallow goes up in flames; that means instant death). Below is a great which screams "more drops to follow"; don't you think people figured the worst was over at each one of those tinted areas?

The indexes might have a little more upside left – – in the coming weeks, maybe an S&P as high as 1325 or so – – but at the moment, the DIA is up to its 32.6%.

The $UTIL is on a fast track to a massive H&S pattern. Amazing.

My energy puts had a dynamite day. OIH is pushing that fan line. Could it crack to the next level below?

I have been buying puts on brokerages and banks. I hope this graph helps explain why.

The Russell hit its Fib perfectly today. I lost about 10k on $RUT puts early in the day, but I re-entered the position at almost exactly the top, and those are in the green now. Not enough to compensate for the loss, but hey, the trade is only a few hours old!

USO has cracked its fan line; the energy market has really fallen to pieces quickly, as I had hoped.

I'm off to the campfire. I'll be looking at more charts tonight. If I see anything interesting, I'll post it in the morning. Adios!

It was a terrific day. My energy and agriculture puts did fantastic, and I'm even in the green on the $RUT puts (ahem, a new position, as my former position was boinked away early this morning).

I won't have time to do a post until this evening, but it should be a good one. I have to return to the archery field where last time I made a bull's eye (how appropriate!), thus earning a coupon for one of the delicious milkshakes here at camp. I must confess, applying my archery skills to provide a milkshake for my family makes me feel so competent, in a medievel sort of way. I shall try for another milkshake. My aim is true. See you tonight.

Well, thank God for energy.

My Russell puts are taking it in the teeth (although this morning's high precisely touched the $RUT fibonacci, so I'm hanging on……) Yet energy's weakness is doing fantastic things for my other positions.

Here are a couple of ideas to chew on.

In spite of yesterday afternoon's earnings bomb from AAPL, SNDK, AXP, and others, the market ended up way in the green today. I was saved only by my energy puts, as gold/oil fell in conjunction with the dollar's newfound strength.

Because of the strength in banks, the $RUT has been especially strong, pushing up an amazing 2.75% today. In fact, much of the Russell's drop over the prior weeks has been all recovered in merely five trading sessions! Bear market rallies have a well-deserved reputation for being fast and merciless.

Looking at the intraday graph, the Russell has retraced to its neckline. This is a very well-formed head and shoulders pattern. If it keeps pushing higher from here, we could be in some trouble.

I refuse to go through another mid-March to mid-May exercise, where I blow all my hard-earned profits fighting a huge rally. So I am being very defensive here. But the above are the most meaningful patterns I am watching. Good luck to you and me both, dear reader!

This is a slice of awesome.