THE FLEECE

Markets rallied on the heels of the jobs numbers but have since turned back giving up much of the gapped gains and futures have turned red as I type (slowwwwwwwwwly). Buying Friday gaps, probably not a great idea.

Strongest sectors include semis, reits, trannies, software, defense, drugs, airlines and small cap value- Weakest are internets, silvers, homies, biotechs and brokers.

Market internals started very strong but have since flipped to +400 on both the NYSE and NAZ. The OEX/NDX/SPX combo all about 60/40 after starting the day 85/15.

Key stocks are generally red with MER MS BSC LEH CME NYX AAPL and BIDU leading lower. I will take the action in the brokers (all red cept GS) as a pretty ominous sign for the day.

Also, note the SPX again tagged the 1,410 line and maybe I will be about 5 to high with my 1,415 target on a short term top.

Buying Friday gaps not a great strategy, even worse when the VIX/VXO combo is trading about 15% below the 10 day SMA's, and down we go as the pre market buyers get fleeced.