THE CLOSE

Markets closed at /near their lows after trying to rally as the DJIA closed -78, NAZ -15 and SPX -7.5.

Each and every DJIA component closed red while 11 components of the NAZ 100 and 14 SPX 100 components closed green.

Market internals had a net 700 red on the NYSE and 365 net red on the NAZ.

Sectors in the green included silver, gold, biotech and retail. All else red with the worst groups being gaming, oil, tech and brokers.

AAPL and GOOG closed red while GS was slightly green.

Markets look set for a bounce as the 2 day RSI on the SPX is under 6, DJIA also under 6 and under 2 on the QQQQ.

The VIX/VXO are both trading about 7%/8% above their 10 day SMA's, so no buy signals yet, but a lower open on Monday will probably give the buy signal. I also suspect some of the PM's will show on Monday to put in a little floor under the markets.

AFTERNOON ACTION

Markets continue to trade lower but pivot trades on the DJIA Futures have been fruitful. The dip to the 12,425 area, a bit above the 2nd level of support was buyable for a quick trade back to the 12,455 level, or just under initial support.

Not too confident that it will work for a third time as we may end at/near the lows of the day.

As far as sectors, the metals, retail, and airlines are higher while gaming, brokers, homies, biotech and financials are acting worst.

Market internals are skewed to the downside with red 940 on NYSE and red 470 on the NAZ. I suspect the 10 year Bond falling off a cliff today and yielding 4.62% is skewing the NYSE internals so I am focusing on the NAZ for direction hints.

GOOG AAPL GS are all lower although well off their morning lows as I suspect we get one more rush to the 12,460 level before the day is over and then close lower.

MORNING TRADE

So while watching the markets go lower, all of a sudden an uptick in the NAZ Futures and flat action in the semis and improving market internals.

The DJIA Futures traded down to 12435, about 15 above the 2nd level of support and started moving up. I bought at 12,446 and set a stop a bit under the 2nd level of support at the 12,415 level. SOLD TO SOMEONE AT 12,467 A QUICK 21 POINTS and I am done for the day.

MORNING DOWN

Markets open lower with DJIA -45, NAZ-10 and SPX -5.

There is weakness across most sectors with oils, gaming, brokers, banks, tech and metals doing the worse. Suprisingly retail is higher along with airlines.

Market internals are weak with 1,500 more losers than winners and up to down volume is 300/600.

The 10 year Bond rate is back up to 4.58% as it continue to trade in a range between 4.52 and 4.62%.

I have no great insight as I just watch but my instincts tell me that not much is going to happen today.

TECHNICALS-OIH

OIH is struggling again after hitting its head at the 151/152 level it has moved steadily lower. Looks on the chart like the current levels may be a good entry point. Prior resistance was this area so just maybe the buyers will show up here.

Otherwise the markets are unspectacular with major indexes flat and about 850 more stocks higher than lower. Interesting how today the NDX/IWM is outperforming the SPX/DJIA. Overall, I expect a day of chop with not much gained and not much lost and I am out.

TECHNICALS-GOOG

One of the reasons for the relative underperformance of the NDX is the action in GOOG. It has fallen from its recent high in mid November near the $510 level to near $455 today. There is a gap on the chart to be filled near the $440 level so that maybe a short term stopping area although it seems to go down every day with decent momentum.

The stock is now up less than 10% for the year and that compares unfavorably with some recent winners like MSFT which is up almost 15%. Funny how GOOG is rarely mentioned by the journalists on bubblevision.

OPENING LOOK

Markets open mildly higher with DJIA +9, NAZ+3 and SPX+2.

Leading sectors include brokers, airlines, small caps, biotechs and trannies. Leading lower are gaming, metals and semis.

Market internals are stronger than the markets with 600 net green on NYSE and 400 net green on NAZ.

The chart above of the NDX shows how poorly the four letter folks are doing in relation to the DJIA/SPX group. In fact, the semis hit their highs back in October so just a heads up that all the folks predicting an ugly selloff after the beginning of the new year may be on to something. If one checks back to the summer when stocks were at their lows, the NAZ led the rally with a move straight up and now seems to have lost the steam first.

OPENING LOOK

Markets open mildly higher with DJIA +9, NAZ+3 and SPX+2.

Leading sectors include brokers, airlines, small caps, biotechs and trannies. Leading lower are gaming, metals and semis.

Market internals are stronger than the markets with 600 net green on NYSE and 400 net green on NAZ.

The chart above of the NDX shows how poorly the four letter folks are doing in relation to the DJIA/SPX group. In fact, the semis hit their highs back in October so just a heads up that all the folks predicting an ugly selloff after the beginning of the new year may be on to something. If one checks back to the summer when stocks were at their lows, the NAZ led the rally with a move straight up and now seems to have lost the steam first.

TECHNICALS- IWM

The Russell 2k has been a lackluster performer of late after being the best performing major market index for most of the year. As the SPX/DJIA has moved higher recently, the IWM hit its highs in the beginning of December and has been trending lower since. It is currently trading near its 50 day SMA and I suspect a break of that line will be disappointing for the bulls. The NDX has acted in a similar pattern and I suspect that these two indexes are giving us a heads up for whats to come in the SPX/DJIA markets.

My guess is "they" will keep the indexes elevated through the end of the year and then a rollover as PM's raise cash and try to figure out the next best thing. Most pundits say that a 3% or 5% correction is healthy but it rarely works out that way as most who desire a correction to buy often find it difficult when the markets are moving rapidly lower.

My strategy now is to let some longs go into the next week and watch what develops into the new year.

SURPRISE SURPRISE

To the shock of all the bulls, the markets did not rally this afternoon and just meandered lower into the close.

Market internals still managed to finish green with about 700 more issues higher than lower.

Best acting sectors were semis, brokers, and gaming while metals, oils trannies and internets acted the worst.

Tomorrow will probably bring slow trading and I doubt that I will be around for much of it.

SAME OLD SAME OLD

Markets are trading higher after a flat open on the heels of some bad guidance from FDX which is dragging the trannies down. No way FDX would numbers have any meaning for the overall economy according to the markets.

Anyhow, if you have read anything about how I trade, and wanted to implement it, today was a perfect sample. The DJIA traded down to the pivot at the 12,540 level, I BOUGHT, and have since sold some at the 12,573 area and still have some for hopefully a further reach to the resistance area of 12,600.

The trade had almost a perfect set up with a move back to the daily pivot, strong internals, strong financials/brokers and strong semis and NAZ leading the indexes.

I am looking to reload on any pullbacks as it looks like the markets want to go higher despite crummy action in GOOG and AAPL. GS is up $3 so the GS over GOOG trade continues to work wonders. Just check the last 12 months together.

THE OPEN

Markets are off to a nice open as the SEMIS and NAZ lead the pack higher. The DJIA is flat while the NAZ is +7.5 and the SPX is +1.

Market internals are hinting at morning gains as the readings are +850 on NYSE and +670 on NAZ.

Strongest sectors include gaming, semis, small caps, tech brokers, biotech and drugs while metals, trannies, airlines, oils and retail lag.

The DJIA is evenly split among winners and losers with HPQ HON MMM MSFT and MRK leading while BA XOM DIS CAT and AIG lag.

GS is trading up about .75% while AAPL and GOOG trade near the flatline.

Oil inventory numbers out in about 30 mins so watch those numbers as they will impact the indexes. Higher I suspect and lower for oil equities. Just a guess.

PRE MARKET

So just as I left yesterday, the market decided to turn around and head higher. Oh well, just another data point indicating how the bulls control this market and how they buy each and every dip.

Market internals closed mixed while GOOG got back about $6 from its recently lost gains. AAPL closed green while the brokers closed mainly lower with the exception of MS.

The NAZ and the semis continued to lag and closed in the red but look to have some jig this morning as they try to play catch up.

If you look at the DJIA chart with the pivot points inserted, you can see the lows forming at the second level of support near 12,400, oscillation and indecision near initial support at 12,420 and the highs near resistance at 12,480. The only way to daytrade these indexes is with the pivot points up on all the major mkt indexes and watching the ones that are in play. More times than not its the DJIA/SPX combo.

I intend to sit here and make some money today trading the YM- the Pivot Point is 12,540 with support and resistance about 40 points below and 60 points above.

NOON NOTHING

Markets are bouncing around under the flatline with DJIA and SPX the best performing of the major market indexes and NDX and RUT the worst.

Strongest sectors continue to be metals oils and drugs while semis, airlines, retail, brokers, and internet act worst.

Market internals are well off their morning lows as 600 are net lower on NYSE and 950 are net lower on NAZ.

The OIH bounced off the $142 level but I wasn't quick enough to act. I will however look to buy any afternoon pullbacks for a swing trade higher.

Banks brokers and semis are all doing poorly causing me to forego any long daytrades and I don't want to short either so I will be probably be taking the rest of the day for errands.

Oh, and the best financial journalist. He is on Bloomberg TV early in the morning and is the clear speaking, not bullish or bearish Brian Sullivan. Check him out early in the morning instead of the CNBC bubblites.

THE OPEN

As expected, the markets opened lower with the NAZ imploding the most and the DJIA hanging in the best.

Strongest sectors include metals, drugs, and oils which have flipped to green. To the downside are semis, retail, tech, airlines, internets, small caps and trannies.

Market internals have improved a bit but show red 1,000 on each the NYSE and the NAZ.

GOOG is trading flat while GS and AAPL are both down about 1%.

I am starting to search for some stocks that look interesting for 2007- one that certaintly deserves some work is AMGN. It is down for 2006 and every one is scared about dems and lowered numbers. We will see.

One other thing, a best and worst financial journalist for 2006. I will give the worst first. See picture above.

PRE OPEN DOWNER

Markets are set to open lower on the heels of a crushing in the THAI Markets (down about 15%) and some ugly news from CC which probably is telling us the holiday selling season isn't going so great as BBY and WMT have also said some not so nice things about retail sales.

SPX Futures set to open lower by 5.25 and NDX lower by 13 as I type. The DJIA Futures are lower by 37 and if the internals are not too ugly, or start to rapidly improve, I will look to buy. My guess is the buyers show and take this market back up to yesterday's closing prices.

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.

NOON SWOON

Markets have flipped to red after the opening herd gets taken again. After opening higher we find the DJIA flat , NAZ-10 AND SPX-3. The small caps are taking the brunt of the selling with the IWM down almost 1%.

Market internals have also flipped for the bears as the NYSE is -600 and the NAZ is -800.

Downside volume is also starting to trump the upside with 297M plus and 396 minus.

GS C and the gaming companies are still brightly green while financials and semis haven't flipped yet. Sectors that are/have turned red include oils, metals, AAPL, internets, GOOG, trannies, drugs, tech and software.

I suspect that most portfolio managers are just going to try to hang on to the gains made this year and will do what ever is necessary to preserve the gains. So probably not much upside or downside from here through year end.

TECHNICALS-OIH

Now that OIH has traded above 150, my year end target, it has dipped to the $146 area and I am looking to buy it back under $145 as no doubt cold weather will show sometime before long.
In addition, I suspect the private equity groups may see some value in the sector sending the group higher before too long.

Back to the equity market, market internals have flipped to flat with semis and gaming being the best performing groups.

GOOG is being taken out and shot today as it is down 7+ points while GS is higher and AAPL is lower on the key stock tell front.

THE OPEN

The markets open higher as the DJIA is +35, NAZ+12 and SPX +4. The day has snoozefest written all over it in my opinion, but the day has another 6 hours to go.

Strongest sectors include gaming as MGM makes a new high, networking, semis, biotechs, tech, brokers and retail. The oils and metals continue to lag while COP, mentioned very favorably in Barrons is up 2.5% as the stock is perceived as very cheap compared to its peers at 7x earnings.

Market internals are green at + 550 on both the NYSE and the NAZ.

Small caps look to be underperforming as liquidity seems to be moving to the big caps for today anyway.

Brokers look to be back to their old tricks of moving higher as all the standards are up about 1% on the heels of lots of deal news.

TECHINICALS-SPX

Markets closed near the unchanged level on Friday after gapping higher in the pre market on the heels of tame inflation news. Buying Friday gaps higher is not my favorite play and markets drifted lower for much of the day and market internals closed in the red with about 350 more losing issues than winners.

Even with the mixed close the SPX finished the week with a high 2 day RSI reading in the mid 90's and the VIX closed about 9% below its 10 day SMA, so it unlikely that we ramp higher from these levels next week. In addition, I expect the pm's to throw in the towel on the rest of the year and protect gain and not chase stocks.