THE CLOSE

Shockingly the markets again closed at/near their highs for the day as the DJIA was the stellar major index in the new big cap rally. The IWM and the NAZ came way back off their lows and managed to finish near the break even level.

Sector winners today included oils, drugs, biotechs, internets and big caps while airlines, trannies, software, tech, gaming and retail were were the worst groups.

Market internals also came all the way back closing with about 750 more losers than winners after opening near the magic 2,000 issue loser level.

Two ugly stocks today were SBUX and GS, one on earnings from yesterday and one on a little pullback. They are both probably buys next week as I expect the major indexes to drift up into the holiday.

AFTERNOON SNOOZE

Markets contine to trade mixed with S's over N's and big caps over small caps. The DJIA has even busted through to the green in spite of the crummy housing numbers.

I don't expect much action this afternoon as next weeks holiday trade probably starts today.

Sectors acting best include oils, metals, drugs, biotechs, brokers and internets. To the downside, airlines, gaming, trannies, semis, tech and retail.

Market internals continue red with about 1,500 more losers than winners.

Volatility indexes are lower again and getting ready to sink under the 10 level, probably in the holiday shortened trade next week.

Oil and the oil services stocks are making a bit of a comeback on the heels of the lowest crude price in 2006. Interesting how the low on the OIH was about 118 six weeks ago when crude was higher.

LOWER OPEN

Markets open lower on the heels of plunging housing starts and overbought conditions. Have no fear as the dip was immediately bought and the markets are way off their opening lows.

Sector winners include metals, drugs, internets, biotechs and financials. To the downside are oils, gaming, semis, homies, retail and brokers.

Market internals are solidly bearish with about 2,100 more losers than winners.

Since this was supposed to be a down day, (see yesterday's posts), it is time to STOP TRADING and check out some of the impressionists that were on David Letterman this week. Caliendo does a fabulous Bush, Madden, Cheney and Robin Williams while Brown and Travelena do a great Jack Nicholson.

NEW LOW

That is a new low on the VIX as it tries to become a single digit midget. My guess is for a selloff into tomorrow and then it all starts again next week as the Thanksgiving week is typically strong for equities.

It is surprising that stocks aren't doing better in light of the trashing that oil (new low) and oil stocks are getting. The market internals are exactly flat as oil is crushed so maybe a bit overbought here. I will however, go out on a limb and predict the OIH hits 150 before year end as winter brings in some cold days in the northeast. OIH is very volatile as it is now trading at 136+ after hitting the 142 level yesterday.

Back to the VIX, it is down to 10.1 and trading at about 7% below its 10 day SMA and a 5 day RSI near 20. It is going to be hard for it to go much lower even with a big holiday week in front of us but I will go with lower prices tomorrow and then I will figure out next week as I may take a day or two off.

AFTERNOON TAKE

Markets are mixed with the big caps outdoing both the small caps and the "tech heavy" NAZ. Quite a change as this hasn't been the case in quite a while. DJIA+42, NAZ+2, SPX+4 and R2K-1.5.

Sector leaders include gaming, brokers, homies, trannies, financials, biotechs and drugs. To the downside are oils, metals, internets, retail and semis.

Market internals even with +300 on NYSE and -300 on NAZ.

Semis are trying to get back to the flatline and the TICK reading has hit the magic 1k number a few times, so I expect a run higher later this afternoon as everyone no doubt want to own stocks.

MACAU MACAU

One of my long time holdings is MGM, a gaming stock with great properties in Vegas and Atlantic City and a 50/50 interest in a Macau casino that is a work in process. Whenever one hears about Macau, its always all about LVS and WYNN, and they have been great stocks. I am wondering if MGM is now going to play a little catch up as their place in Macau is scheduled to open in early 2007. My guess is that the Macau casino will do great as the folks in that region appear to love to gamble even more than we do.

MGM does not trade at a wild valuation and is expected to make $2 this year and $2.5 next year. WYNN trades at 90+ and profits are projected at 40 cents this year and $2.3 in 07, while LVS, also trading over 90, has anticipated profits of $1.8 in 2007. MGM looks like the "undiscovered" Macau play.

OPENING DANCE

Markets open mixed with S's over N's the trade as the SPX is+4.5, DJIA+34, NAZ+1.


Market internals are a +900 on the NYSE and +200 on the NAZ.

Sector winners include brokers, airlines, gaming, trannies, financialsl, oils and biotechs. Losers are semis, metals, retail, tech and internets.

The brokers seem to be getting bids off of all the buyout/takeover news and my fav GS is at a new all time high and approaching the $200 target.

I understand some folks are dissappointed by the HTZ IPO, but knowing something about the rental car business, you really don't want to do a monback on the stock. Owning a rent-a-car company is being in the used car business. I don't see great fundys for that as GM F TM etc are all fighting for new car sales. To each their own.

TREND FOLLOWING MORON

Futures have the markets set to open lower on the heels of the DELL delay/AMAT disappointment or even more likely, overbought conditions in the major indexes. Buying the NDX at the 8 or 21 day SMA has been a very profitable trade on several occasions and I suspect it will happen again. Calling for the markets to reverse and head lower has not been a good strategy lately and I don't plan on fighting the current trend. The amusement of the day will probably be waiting to see how long it takes for the bulls to buy the dips and send the markets higher. Ooops, and just as I type, news crosses that RDA will be bought out by private buyout firm Ripplewood and up go the futures. And up go the futures on low inflation and good jobs numbers. Say LIQUIDITY. Say Higher prices.

THE CLOSE

Another good day for the bulls as the IWM was again the standout performer followed by the NAZ. Markets hit their highs near the 2:00 EST hour when the FOMC docs came out and slowly drifted lower into the close.

Sector winners included airlines, metals, trannies, internets, biotechs, brokers and small caps. Losers included gaming and financials.

Market internals held well ending with 1,500 more winners than losers.

DJIA winners included INTC CAT BA MO PFE and AIG- To the dowside were HPQ T VZ JPM HD C MCD and MSFT.

GS, my main tell, was over $194 for much of the day and if the markets hold together, I expect a $200 handle some time before the end of the month.

The SPX closed with a 2 day RSI of 95 and the IWM a 97; They both can and probably will go higher but I expect a breather on both for the rest of the week.

Tech took a little breather today as the SMH was all over the chart; probably the pause that refreshes and next week probably brings higher prices.

HEADS UP

Markets continue higher with the IWM being the best performing major market index- DJIA+38, NAZ +14, SPX +4.7, IWM+6.

The game continues the same with airlines, metals, oils, gaming, biotechs, brokers, small caps, retail and semis leading higher while banks are lower.

Market internals are bullish with about 1,600 more winners than losers.

If anyone is interested in following the IRAQ situation, John Abizaid and others are currently being questioned by the Senate Armed Services Committee led by John Warner. CSPAN2.

FOMC minutes coming out at 2:00 so just a heads up as that will be a market moving event.

OIL GUSHER

Oil stocks are ripping higher on the inventory news as the distillate draw was a bit more than expected. Higher on the news includes the usual suspects XOM VLO FTO and OIH.

Sector winners continue to be airlines, oils, trannies, biotechs, internets, small caps, brokers, homies and defense stocks.

Semiconductor stocks have turned tail and are lower by about half a percent along with other key stocks like JPM C KLAC LVS INTC DNA and HET. Techs stocks are also lower and they may be telling us something as they have been the biggest recent winners.

Market internals still bullish with +700 on NYSE and +425 on NAZ.

I suspect if the markets do sell off a bit, the bulls will chomping at the bit to own stocks.

OPENING PEAK

Same as usual, markets open higher led by the NAZ and the tech/semi group.

Sector leaders - airlines on the heels of the delta proposal, homies, trannies, internets, retail, biotech, and small caps. Leading lower we find metals and drugs.

Market internals pointing north although nothing great with +500 on NYSE and +350 on NAZ.

Interest rates are moving back up as the yield on the 10 year Bond is back to 4.61%.

Oil patch numbers are due out at 10:30 EST and everyone is expecting a big build. Just wondering if the oil stocks will go higher on any number build or no build. I suspect so.

And isn't it a great market when anyone who buys stocks is a genius.

DESPERATELY SEEKING BETA

As everyone knows, the markets ripped higher yesterday afternoon on the heels of shorts covering their SP Futures contracts as they broke through the all important 1,390 level. I am not sure what "all important" level the R2K exceeded, but it was up a heck of a lot more than the DJIA/SPX tandem. For anyone stuck in the SPX as a way of playing a rising market, I recommend a switch to the R2K. One could clearly see the benefit of Beta yesterday as folks grabbed the semis and the small caps.

Year to date, the R2K is up 16.6% while the SPX is higher by 11.6% and from the lows on June 14, the R2K is +15.9% while the SPX is + 13.3%.

I obviously don't know it its straight up from here, but I do know that the SPX 1,400 number is staring us in the face and from what I hear, there is lots of options activity sitting at that number.

CLOSING THOUGHTS

Market close near the highs as the CNBC team of PISANI/BARTIROMO/RATIGAN attribute today's rally to the SPX break above the magic 1,390 level. Of course they make no mention of the fact that the small caps (IWM) were up double the SPX/DJIA and the SMH etf was up triple the SPX/DJIA combo.

Winning sectors included semis, retail, small caps, brokers, airlines and tech. The losers, metals, trannies and MSFT on the ZUNE news (bust).

Market internals closed with about 2,600 more winners than losers with a skew to the NYSE.

VIX/VXO tandem back under the 11 level and again extended to the downside while the 2 day RSI on both the SPX and IWM are back at the mid 90's level.

My strategy now after buying earlier and selling into the close, wait a while as the market will probably sell down from here in light of all the euphoria.

ANOTHER LOOK

Looks like the BIG CAP stocks are back to their old tricks of trailing the little guys. Noon time finds the DJIA-40, NAZ-7, SPX-4 and the IWM +7 cents. Must be the overhang from the election where folks have finally realized that the dems have swept both Houses.

Sector winners today include retail, GOOG, oil service, homies, fixed income, small caps and semis. Lagging and leading lower are metals, airlines, trannies, biotechs, brokers and banks.

Market internals show about 40 more winners than losers on the NYSE and 500 more losers than winners on the NAZ. The fixed income stocks are no doubt skewing the NYSE.

Jim Cramer out with another favorite speculative stock - He likes NICE:

"One of my favorite speculative names, NICE Systems (NICE), just keeps winning homeland security order after homeland security order. This is an Israeli company that knows this stuff. It is one of my faves.

Position: None"

Do not get NICE confused with ARNA, LVLT or Q, those are his three favorites, this is only one of his favorites. Just ridiculous and a scam on the bubblevision watching public.

STOPPED OUT?

A few weeks ago I wrote about Jim Cramer's three favorite speculative stocks. I don't know if he offered any "stop out" guidance but I do know that ARNA is down about 9% from the basis and Q is off about 6%, so not exactly guru like picks from our guru. Oh, and LVLT is up about a penney since his fabu call. Just keeping you up to date. Any chance Erin will crow about these picks on her show? Not likely, but I am sure she will find one to squawk about.

THE OPEN

Markets open mixed after cheery news of lower inflation was faded by the opening sellers. The lower inflation numbers have sent the bonds back up and the yield on the 10 year Bond is trading back to the 4.55% level. Be on the look out for allocators as some may start to sell the bonds and buy equities driving equities higher.

Sector winners include retail, oils, small caps, brokers and tech. To the downside, airlines, biotechs, trannies, drugs and banks.

Market internals are slightly red on the NAZ and +700 on the NYSE with a skew from the fixed income stocks.

I expect the markets today will fluctuate but not travel far in either direction. So I may be back to the buy the dip sell the rip scenario.

THE CLOSE

Markets hit their highs in the first hour of trading and then just flopped around the balance of the day.

Tech and the NAZ were the outperformers while the big cap indexes did little.

Since the NAZ has been outperforming, I have switched my futures focus to NQ from YM as there is more volatility and better performance of late. The DJIA seems stuck lately as drug stocks lagged the last several days and WMT CAT and HD have also run into some selling pressure.

Market internals hit their highs early in the day (+1,500) and closed with about 700 more winners than losers.

Sector winners included airlines, semis, gaming, trannies, brokers and internets. Big biotech names were drags today as both AMGN and DNA were both lower by more than 1%. Metals also brought up the sector rear.

DJIA winners today included INTC AIG HON GM VZ and PFE while MCD HD PG DIS and JNJ were the biggest losers.

GS is starting to act a little doggey and today it is down $2 from its morning highs. Not sure if it is telling us something, but I would not be surprised.

There seems to be some significant resistance at these levels and Tuesday's generally have a "turnaround" connotation, so we may see a bit of a selloff tomorrow.

RESISTANCE

The numbers mentioned this morning, SPX 1,390, NDX 1,765 and DJIA 12,200 look like they are providing mucho problems for the markets. Market internals have flipped to flat and biotechs and retail have begun to sell off.

One stat of interest, as the internals have gone flat, the DJIA components have stayed green with 21 up and 9 down.

INTC AIG GM HON and VZ leading the DJIA while MCD HD DIS PG and AA are leading lower.

I am watching to see if the banks and brokers can rebound here, if not the markets will probably not get the typical afternoon lift.

NOON TIME

Major market indexes continue higher but some deterioration has taken place and the market internals seem to be one place where it is obvious.

Market internals had gotten to +1,500 into the ramp but have now slipped to +300. The action in the semis and the IWM also seem to be indicating a problem as both are way off their highs with IWM trading flat.

The Oils stocks have climbed back to the flatline in spite of the lower crude prices (down a buck). Whats up with that?

Brokers and banks have the same story to tell as both indexes reached their morning highs soon after the open.

Sectors acting the best include airlines, semis, brokers, tech, internets, trannies and drugs while leading lower are metals and biotechs.

The SPX 1,390 and YM 12,200 levels have been major resistance of late and they may be repelling the buyers again. It also looks like 1,760/1,770 on the NDZ may be an area of resistance as that level was a top back in January and again in April so one may wish to trail the stops here as this certaintly could be an area that the markets have a hard time busting through.

THE OPEN

Market futures before the open were fairly flat with not much of a direction. As soon as the markets opened- boom - higher right out of the gate on the heels of what appears to be a terrific demand for equities and especially equities on the NAZ.

The DJIA and the SPX are certaintly lagging the "tech heavy" NAZ of late and this moring is no different as the NAZ is higher by about .75% while the DJIA and the SPX are up by about .25%. The small caps are also lagging the NAZ, up by a mere .4%.

Market internals show +600 on the NYSE and +700 on the NAZ.

Sector winners include brokers, semis, tech, airlines, internets, retail, trannies and drugs. To the downside are metals, oils and consumers.

The DJIA finds 22 higher and 8 lower with GM INTC VZ and PFE leading while MCD AA DIS and XOM trail.

Fixed income is getting hit and my guess is its asset allocators selling bonds and buying equities. The 4.62% interest rate doesn't seem so great when equities seem to go up every day.

TECHNICALS-NDX

While checking some of my statistics over the weekend, I found the VXN to be a bit oversold here as it is now quoted at/near the 10% below its 10 day SMA. The VXN has not been a great trading tell as it often goes way below 90% of its 10 day SMA and way above 110% of its 10 day SMA. However, I am going to keep an eye on it here as the VXN is near the level it was the last time the NDX started its rapid descent in May of 2006. Of course the NDX is also near the 2006 highs as it has been one of the best indexes in recent months.