LATE MORNING LOOK

Markets continue to trade higher with the DJIA+36, NAZ+8 and SPX+3.75.

Sector winners include airlines, metals, reits, small caps, semis, homies, banks and brokers while oils, retail, internets and software lag.

The DJIA shows 28 winners and 2 losers; SPX 100 has about 80/20 winners to losers and NDX about 70/30 winners to losers, fairly bullish.

Market internals are 1,150 net green on NYSE and 600 net green on NAZ.

Hopefully some folks took advantage of the morning DJIA YM Futures call and bought and sold. And a heads up from Adam on the 50 day SMA on the OIH.

Jeff Saut had a great piece on minyanville.com this morning on his predictions. Check out some of his stuff below:


"1) What is your target for the S&P 500 a year from now?

Answer: Assume the S&P 500 is going nowhere and invest accordingly. Our investment approach has typically centered on trying to invest in “cheap” stocks, since good things tend to happen to “cheap” stocks. That strategy has allowed our Analysts Best Picks to achieve a 38.3% per annum return over the past 10 years.

2) How much do you expect S&P earnings to grow in 2007? Answer: Less than the consensus projections.

3) When the Fed moves again, which direction will it be? Answer: The “fooler,” in 2007, may just be that the economy re-accelerates and the Fed actually raises interest rates, not lowers them.

4) When will the Fed make its move? Answer: Who knows?

5) Interest Rates. The Fed funds rate is currently 5.25%. Where will it be a year from now? Answer: Unchanged.

6) The 10 year T’note is trading just above 4.5%. Where will it be a year from now? Answer: You might as well “flip” a lucky penny.

7) What is your expectation for economic growth next year?

Answer: The current economic environment is rendering “mixed” signals. While the headline figures suggest slower economic growth, many of the numbers we look at are actually accelerating. Consequently, we are confused and accordingly cautious."

More to come later in the day from the real deal.