RALLY CAPS

I mentioned in the Noon post that I expected the NAZ to bring the major indexes up in the afternoon and sure enough I got one correct. I played through the YM DJIA Futures and the SMH, which continues to act great.

Other nice winners of late include MGM IAI and GS. The oils continue to lag and I do own a bunch of stocks in the oil group. However, I am comfortable with them as I don't feel like its owning the QQQQ in Y2K.

Strongest sectors today included gaming, airlines, semis, brokers (new 52 week hi on XBD), reits, tech, internets and retail while the usual groups (dogs) lagged such as metals, oils and drugs.

Market internals were a mixed bag as they were overall flat after being way red in the morning.

The internals on the major indexes were a little different story as they flipped to green late in the morning. The NDX closed with about 70/30 winners to losers while the SPX closed with 300 winners and 200 losers.

One laggard of note is the IWM small cap index; probably just not enough tech as that is the play so far in 2007.

The VIX/VXO volatility indexes were both back down to the 11.5 levels and now trade flat with their respective 10 day SMA's.

And check this out AAPL +4.43, GOOG +3.96, GS+4.03, MER+.91, MS+.68, ICE +10.55.