OPENING SEMIS

I guess the NSM guidance was good news as the SMH is up over 1% and NSM is higher by 2%, so its all in the eye of the beholder.

Anyhow, I was gonna say that the SMH was looking good on the pullback but so much for lower prices.

Market internals are very strong again with about 800 more winning issues than losers and sector winners are metals, SOX, AAPL, EBAY, internets, and airlines; losers include oils, GOOG and retailers. Brokers, banks and GS are flat so no directional help from the financials.

Homie numbers are lousy and that number is putting a bit of a damper on the rally; although I expect this dip to be bought.

The oil report is due at 10:30 eastern so be ready for volatility in the OIH/XLE group.