ONE MORE THING

Markets continue higher with the IWM+1.25%, DIA+.85%, NQ+1.1% AND SPY+.7%. So, no rotation today out of small caps as the oils weigh on the big caps.

Best sectors today, airlines, trannies, retailers, internets with the laggards being oils, metals and financials. My tell, GS is unchanged on the day as it has bounced from the morning lows.

Market internals with 2,100 more winners than losers but the semi/ techs are starting to lose a little gusto.

I am taking off some longs into the ramp here as I expect the markets to have a tough go for the rest of the week as we move into resistance and probably the end of the oil selloff.

Barry Ritholtz, on his blog, has the WSJ data on second quarter earnings and it is an interesting read.

Bottom line, of the 3,834 Russell 5k reporting second quarter results, 49% of the total Net Income came from financials and oil/gas companies and those profits rose 17% and 51% respectively 2nd q 2006 vs. 2nd q 2005. Any chance these industries will find their earnings growth decelerating? And if you do, it may be time to trim the longs as they have a disproportionate amount of the growth and the market cap.