MIDDAY AMUSE

High prices galore in the markets as the SPX/DJIA all clearly above recent highs. The NAZ and tech are acting the best and maybe another opportunity to sell those SMH's. My plan, STOPS.

Strongest sectors include brokers, emerging markets, semis, internets, tech, metals, software, airlines, trannies, biotech and homies while the dollar, reits and oils lag.

The second level of resistance on the YM DJIA Futures at the 12,760 area and I am watching closely as I have some to sell. Genrally, pretty tough for markets to exceed those levels, but its also unusual to have 93/80/400 winners on the NDX/OEX/SPX.

All the key stocks acting well with the exception of NYX. Small and mids also lagging but nothing to get excited about as I expect another SURGE into the end of the day.

Volatility indexes approaching the SELL signal area at 10% below the 10 day SMA. I have found the signal works better on the buy side so maybe they sit near these levels and we drift higher on the major indexes.

Great pick up by Adam on the latest and greatest from Kramer as he sees GS back at $215 for a pin where an option strike doesn't even exist. I guess homework is a thing of the past. He is also calling for a rate cut in May; how he knows is beyond me, but why argue with the best.