PRE FED LOOK

Markets are mixed with the NAZ higher by 4, the SPX higher by 1 and the DJIA lower by 23. The forgotten but best performing ETF of the month, IWM is lower by nine cents as I type with the SEMI'S being the story of the day with the oil service group. Notice to XOM holders, the stock is now trading near the all time high as crude has traded down from 78 to 57 and now hanging at 61. Hmmmmm.

Market internals are flat on the NAZ and slightly green on the NYSE with 400 more winners than losers after being +1,000 earlier this morning.

Best sector of the day is OIH as it is higher by another $4 or 3%. Internets, semis, metals, tech and trannies also acting well. Losers include airlines, retailers, brokers, biotechs and banks. My question is why are the airlines on the bottom of the list with trannies near the top with higher oil? Yeah its always a question about something.

Pivot point trading was not very good on the YM as the futures went through support and has since rebounded after hanging near the pivot for much of the morning. No idea what the afternoon trade yields, but probably lots of volatility due to the Fed head.

The trade in the oil service sector becomes the current focus as the ETF is now up about 20 points or more than 15% since the initial suggestion back in late September. The target is right around the corner but my concern is that it goes lots higher and I will miss it so trailing stops are now the best course of action.