AFTERNOON THOUGHTS

Markets continue higher with DJIA +30, NAZ +7.5 and SPX +4.5. The small caps are underperforming the bigger indexes and they may be giving us a hint of a little sell off to come.

Checking the sectors, techs is doing well with semis up over 1% and internets (HHH) up a little less than 1%. Other winning areas include coffee (SBUX), homies, brokers, retail, drugs and trannies. Worst groups include metals and oil service. In light of the red OIH, I am contemplating adding to my long or selling some puts near these levels.

Market internals continue to trade green with +900 on NYSE and +450 on NAZ.

If one is a little bored with the markets I recommend the Gates hearing on CSPN 2. Mr. Gates is actually answering hardball questions. Interesting stuff.