DESPERATELY SEEKING BETA

As everyone knows, the markets ripped higher yesterday afternoon on the heels of shorts covering their SP Futures contracts as they broke through the all important 1,390 level. I am not sure what "all important" level the R2K exceeded, but it was up a heck of a lot more than the DJIA/SPX tandem. For anyone stuck in the SPX as a way of playing a rising market, I recommend a switch to the R2K. One could clearly see the benefit of Beta yesterday as folks grabbed the semis and the small caps.

Year to date, the R2K is up 16.6% while the SPX is higher by 11.6% and from the lows on June 14, the R2K is +15.9% while the SPX is + 13.3%.

I obviously don't know it its straight up from here, but I do know that the SPX 1,400 number is staring us in the face and from what I hear, there is lots of options activity sitting at that number.