MARKET MUSINGS

Markets continue higher at Noon but have made about zero progress since the first half hour. DJIA +61, NAZ +24 and SPX +9.4.

Sector winners include retail, semis, tech, NAZ, oils service, oils, trannies, gaming, internets, software and biotechs. Lower finds airlines, JPM and BAC.

Market internals have deteriorated considerably from the early euphoria and we now find about 1,900 more winners than losers compared to +3,000 earlier this AM.

On the DJIA, the winners are AXP HON HD DD WMT and JNJ while UTX JPM MMM BA and MO are lower; 25 up and 5 down.

The small cap index, RUT, also hit its highs earlier in the morning and has steadily sold off about one half %, so perhaps telling us something.

There is also lots of chatter about 1,425 capping this recent move on the SPX and with the VIX down in the mid 9 area and at new lows, it is probably prudent to take off some longs.

I don't expect much more upside into the end of the year as the name of the game for the PM's will probably be "gain preservation" and lets end the year here.