THE MIDDAY

Markets continue higher as the buy signals from Friday and yesterday were pretty good signals - the DJIA is +100, NAZ +10 AND SPX +9.8.

Put your Revshark's, Kramer's and other gurus aside and just look at what works. Yes, buying pullbacks in strong trends as defined by volatility/relative strength indexes. They have proven to be profitable over long periods.

Strongest sectors include oils, metals, gaming, homies, emerging markets, trannies, internets, financials, retail, defense and brokers (flipped); Weakest include biotech, drugs and semis.

Market internals (generally the best tell) are very strong with over 1,300 more winners than losers on the NYSE and net 500 green on the NAZ.

Major indexes also trade very green with 4/1 up to down on the SPX; 73/27 on the NDX and a whopping 85/15 on the OEX.

Volatility indexes are crushed as the VIX has dropped over 10% in slightly over 3 hours of trading while the VXO and VXD have dropped almost 11%.

All of my key stocks have turned green with ICE BOT CME MS acting best while AAPL GOOG and MER are green but lagging.

The semis are very bothersome as they refuse to participate in upside movement. A suggestion for any long - SELL on the next broker upgrade.