CRUDE KING

Hard to believe the DJIA/NAZ/SPX could be higher when crude is up another buck and trading at 66+. The RUT and the MID are under performing again as they are red while the big cappers are green.

Strong sectors include oils, silvers, defense, software, brokers and growth stocks. Oddly enough, small cap growth is out performing large cap growth as I type. Losing groups include airlines, gaming, semis, homies, trannies and biotechs.

Key stocks are mixed once again with GS MSFT MS BSC CME NYX MA SLG AMGN TXT ang GE all green while losers include MER LEH BOT ICE JPM C GOOG RIMM and INTC.

Market internals continue to trade red with the NYSE at red 480 and the NAZ at rd 600.

The OEX/NDX both trade with 2 up to every 3 down.

Volatility indexes - FLAT. Still trading above their respective SMA's as the chatter continues to be that folks are buying options for "protection."

I continue to think the markets are going higher and will probably challenge the old SPX "closing" highs at the 1,528 area. Remember the all time high was near 1,560 on March 14, 2000.

Also, congrats to all the OIH longs as the etf now trades over $160 and up $3 on the day. A very very strong sector and now up 15% on the year, about triple the SPX/RUT for 2007.