HALF TIME

Markets have recovered almost 2/3's of the morning losses as the month end mark ups may finally be appearing. The NDX/QQQQ is almost flat and the Midcaps are again showing their muscle as they are down about .15% on the day; nevermind that they are up almost 6% on the year while the always recommended never performing big caps are red.

Sectors acting best include metals, silvers, integrated oils and utilities. Weakest groups include homies, emerging markets, brokers, airlines, semis and real estate.

Key stocks turning greener with GOOG MSFT NYX ICE C MA TIF all flat to green while most of the brokers are still solidly in the red.

Market internals well off their lows with about 1,000 net red between the NYSE and NAZ while the OEX is 25/75 up to down and the NDX 45/45; so strength is in the NAZ.

Volatility indexes hit the magic 10% above the 10 day SMA and went on buy signals while the 2 day RSI's also hit oversold levels of under 10 on the IWM SPY etc.

I have been scaling in to some longs over the last few days and unfortuneately jumped the gun a bit on some ETF's. I continue to expect higher prices into month end and we may even get some unexpected good news on the oil/housing front that will take us higher.