As to XOM, long-term oriented traders ought to wait for the Crude Oil price to settle back to the 200-day MA price level, which will pull XOM down into the mid-70’s in a couple months. That would be the time I would pay particular attention to the Cara Accumulation Zone/Buy Alert methodology.

From the XLE chart, it appears that XOM is ahead of the curve. Caraistas must be taking action? This likely means that the smaller-weighted shares of energy company components of XLE could be in for a relatively tougher time (than XOM) in the months ahead.

Without falling oil prices, there can’t be a summer rally in the broad market, which must then be led by Financials and Tech.

All the Banks and Broker-Dealers will get a lift in the rising tide of a rally. That doesn’t mean the worst of the problems in these financial services companies is over. Yesterday, the Wells Fargo Bank CFO, talking heads and HB&B supporters, seemed overjoyed at the fact the WFC earnings vs a year ago only dropped a certain (large) percent. Don’t get caught up in that hype stuff. A lot of the trading volume is short-covering and day trading. We’re not looking at a new Bull market in Financials.

In fact, what is happening with HB&B is much like a Sadie Hawkins dance where all the ladies have joined the hunt for Mr. Right. HB&B today is all about M&A tomorrow. It’s all part of life.

Finally, I have a very long report called: “TAX HAVEN BANKS AND U. S. TAX COMPLIANCE -- STAFF REPORT, PERMANENT SUBCOMMITTEE ON INVESTIGATIONS, UNITED STATES SENATE” that was tabled this morning. For all traders who have set up accounts in Switzerland and other so-called “tax havens”, you ought to pay attention. If you are serious about this subject, send me a confidential e-mail (hit the side-bar link) and I’ll forward you a copy later today.

Btw, if a sovereign country like The Commonwealth of The Bahamas has decided to operate its fiscal and monetary system with zero tax on all persons and corporations, foreign and domestic, and peg the currency to 100% the USD, why is there an inference by countries, such as those in the G-8, that the Bahamas is doing something illegal or improper? This presumption by the US authorities (our way or the highway) is flat wrong.

Now that I’m pissed, let me tell you that yesterday the US authorities arrested a 1200-passenger cruise ship in the NYC harbor, claiming 60 deficiencies. I see nothing wrong in protecting people. That’s important. But why is it that politics and US economic interests have to come into play? Was it Hill & Knowlton once again who wrote the media kit for DC? I refer to the “news” carried by the major media that this cruise ship was “out of Bahamas”. Not one mention of the owners or the cruiseline or the prior licensing and scrutiny of permits by US authorities – just “this is Bahamas”. My response is simple: “No to the jerks who wrote that stuff and who aired it on command, this is the Ugly American at work. I resent it. I don’t think the American public realizes yet how much they are led by nose rings.” Quote me.