MORE ROTATION

The schizophrenic day in the market continues as an initial selloff on the FED minutes has reversed to euphoria. I will just blame it on light volume as that excuse can be used for any incorrect directional call.

Speaking of wrong directional calls, check the IWM as it leaves the SPY and DIA in its dust along with the SMH. The rotation into Large caps is again on the back burners and lets see if the bubble lights at CNBC mention the doggy action in the brokers led lower by GS and MER.

Market internals have flipped the green switch in a hurry and now show a bullish 1,200 more issues higher than lower. Sector winners include semis, small caps, drugs, internets and retailers. The big losers are the brokers followed by oils, metals, trannies and Reits. The 10 year has also flipped and now trades near the recent low yield of 4.78%, perhaps a catalyst for the latest little rally.

Volatility indexes have been fairly unuseable lately as they hang in at there recent lows and trade near their 10 day SMA's.

I would look at this most recent lift as a time to sell longs and reload some shorts as I anticipate lower prices in the short term.