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United States Steel Corporation (NYSE:X) reported earnings this morning. The stock has soared, making new 52 week highs. Where is X heading and what caused the pop?

Earnings were solid but this run higher is more based on short covering than positive results. This tells us the pop in the stock price will run out of steam. The question is, at what price level? The price level is quickly approaching based off a beatiful trend line seen in the chart below. Look for a max move of $23.50 on U.S. Steel before a pull back begins.

Superconductor Technologies, Inc. (NASDAQ:SCON) is a small cap company that has a history of mega moves. The small cap market right now is red hot and every investor is looking for that next big score. SCON is likely that stock. Trading at lows in an amazing long base of consolidation, this company has just peaked above the 200, 50 and 20 daily moving averages. Volume has been increasing over the last two weeks as well on accumulation. A break above $3.75 sends SCON to $6.25. There is huge potential on this micro cap name. It is one of my favorites.

Sometimes the most profitable trades are the simplest. This may be the case here with the semiconductor sector following a eurphoric pop on Texas Instruments Incorporated (NASDAQ:TXN) following earnings. The sector had already been soaring and this added to its meteoric rise. So why is it a short? First, euphoria. Rallies always end on total greed. The chart of the $SMH has rallied from $53.00 to $63.00 in a month. The next reason is the most powerful and most compelling. On the monthly chart of SMH there is a trend line connecting the high from July 2007 to June 2015. That trend line was tagged today. Every time this trend line has been touched there has been an epic top and mammoth pull back in the SMH. It should be no different this time. I am buying puts but another way to play it would be to short the SMH or buy the $SOXS.

The S&P 500 is chopping up and down today, ahead of the Federal Reserve FOMC Policy Statement tomorrow. The charts today should tell us where the markets are headed on this announcement tomorrow. As long as the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) stays above the two trend lines shown on the chart below (at the end of the day), expect a positive reaction to the FOMC statement. If the SPY closes below (end of day), watch out, major downside may be seen.