CLOSING THOUGHTS

Markets sold off in the afternoon after the trusty market internals gave us the early heads up that this Monday gap up was going to be sold.

The DJIA was -4, NAZ-22 and SPX-5 while the small caps were down about 1.5% and the OIH sunk about 3.75% on the heels of warm spring like weather in the Northeast. I doubt the warm weather stays for long as I doubt the OIH stays down under $145 for very long as I will probably start a new position in OIH tomorrow if it opens lower.

Lots of debate today about whether we sell off into the last trading days of the year or hang in as the PM's try to protect bonuses. I am in the camp of bonus protection and expect the major market indexes to sit around these levels through year end. After all, buying any dip in the markets since the summer selloff has been a winner and I don't expect this one to be different.

Check the chart on the NAZ and the surprising information is that the index has done very little over the past month. Also, the 50 day SMA is only about 35 points under so that maybe a target once the new year starts.

And how about the superstar that is GOOG, up a whole 11.5% on the year lagging such big movers as XLE and OIH.