AFTERNOON THOUGHTS

Markets are hovering near their highs but giving opportunistic traders the chance to scalp some profits.

Strongest sectors include gaming, semis, brokers, reits, retail, oil service, small caps, tech, metals and homies. Biotech and utilities continue to lag.

Probability says we close at/near the highs as the Market internals are very strong and are giving an upside wink as the cliche "markets that are strong all day generally close at/near their highs" is probably applicable.

The OEX is 90/10; NDX 85/15 and SPX 450/50.

The NYSE is +2,100 and the NAZ +1,240, also very strong.

IBD 100 also about 95/5 between winners and losers.

Volatility indexes- lower by about 11% and shouting sell as the magic 10% under the 10 day SMA is here and now. Probably tomorrow as the 2 day RSI on the SPX is also now over 80.

Key stocks are all strong with GS MER MS LEH ICE all indicating a strong close.

The fly in the ointment (always something), job report day tomorrow- will longs hold overnight if they anticipate a lousy number? My guess is that a lousy number is anticipated in light of recent news from construction/retail and the colder weather.

So who doesn't know, and isn't that one of the reasons we sold off last week? Old news? We shall see.