HAPPY HAPPY

Markets closed near the highs as the DJIA was +157, NAZ +44 and the SPX +21.

Strongest sectors - silvers, gaming, emerging markets, Australia, metals, brokers, real estate/reits, small caps/value. Biotechs, drugs and trannies underperformed although all higher on the day.

Market internals- the opposite of the last few days and very bullish with a net 4,000 green on the NYSE and NAZ. The big index internals - just great with about 470 green on the SPX/ 95 on the NDX and 97 green on the OEX.

IBD 100 stocks- 95 up and 5 down. Big winners include HURC BTF WFR TATTF HMIN and SSYS.

GOOG AAPL GS IAI MA BSC LEH CME NYX all very, very green. The drugs and the consumer sectors didn't do well and I will take that as bullish.

Interesting how the strategists show up on CNBC this afternoon and say "of course we are having this big rally, we were very oversold." Yes, I know that was the easy trade- nevermind all the strategists who were on TV yesterday who said "we probably have more to go on this selloff."

I must confess, I bought too early in this selloff (last Tuesday/Wednesday) and didn't sell; and today it paid. Also, bought the Scooter Libby selloff at Noon and rode those YM DJIA futures all the way to 12,225. Very Lucky.

Where from here? Next stop probably the 1,400 level on the SPX and maybe near 1,415 as that will be a 50% retracement from the 1,375 low.

Volatility indexes, crushed and now trading only 9% above the 10 day SMA levels. The 2 day RSI back at 65 so maybe a little higher to start unloading as I suspect the selling will begin at 1,400, a nice round number.