Just about every other CB antenna will work better than that one. Adjusting that antenna is very touchy. If you move the stinger just a 1/8", it can change the SWR quite a bit. You just have to make tiny adjustments and be patient. Or, you can get a better antenna.....If you're after a mag mount, start with the Lil Wil', and if you're willing to deal with a little more height, then move up to the Wilson 1000. You'll find a huge difference in RX and TX.
I'm not quite following you on the TX/RX indicator issue. What was it supposed to do, be green on RX and red on TX? It won't hurt anything to TX while the switch was set on SWR.