UTURN

Markets are trading right back at the resistance level highs of the past few weeks as the markets make a UTURN on the news of the Rummy resignation. Just wonder what Colin Powell is saying about that (lol).

The small caps are the leading index today and it has been green for most of the trading day. Not sure what ever happened to the big caps over small caps but it is pretty clear that if the markets are going to move higher the small stocks will outperform. I guess clear to all but the CNBC journalists.

Sector leaders- oils, GOOG, internets, retail, tech and small caps. Losers include drugs, airlines and metals.

Market internals have flipped to 1,600 to the green and every strategist on TV now says "I am bullish." If you would have said to them yesterday would you be bullish if the dems took over both the House and the Senate, I bet they would have said something different. Of course its always good as they want you buying stocks. Its good for bonuses.

I don't know why I ever switched back to CNBC from Bloomberg, but who writes this stuff for the anchors. Erin asks the a political guy, after the Tester call-Do you think the democrats will take over the Senate? Memo to Erin- its done- George "Macacca" Allen has the same chance of winning his old Virginia seat as I do- Tradesports odds for a Dem winner in Virginia now at 97%- odds on Montana 99%.

Cramer's single best idea FNM- Note to all the folks who want to buy stocks/sectors on the heels of new politicians- check the chart of the DRG index since the republicans took over all three branches in 2000 elections. Yes, they have gone nowhere in six years. Just FWIW.