MARKET RIDDLES

The markets continue to trade near their highs despite oil trading back over $75 and disappointing news from the Middle East where a cease fire is still not on the table. Leading sectors are oils, internets, natty gas, small caps, biotechs and homies. Not many sectors are more oversold than the semis and today's bounce has to be a bit disappointing to the bulls leading me to believe that QQQQ/tech will continue to be a weak sector.

So why are the markets ripping higher; my guess oversold conditions/M and A activity and good news from the drug sector.

The money trade has been a fade of rallies and that is exactly what I plan to do via the QQQQ. The VXO/VIX combo are both in the oversold area and approaching, or at, the "magic" 10% below 10 day SMA level.

Remember, markets that are strong all day tend to close at or near their highs and I don't expect today will be different and that is why I intend to wait a bit for the QQQQ short entry.