PLEASANT CRUDE

Not much left to say except DJIA 13K is in the rear view mirror (for now) and AAPL is trading up to over par on the heels of a well received earnings report.

The small caps lagged all day and finished up .7% compared to a 1% gain on the DJIA and the OEX/SPX.

Crude also ended up 2% so all the talking heads looking for the markets to be up when crude is down and vice versa ought to check the charts as nothing is further from the truth. The OIH was up over 3% and the XLE about 2% on the day.

Strong sectors besides oil included tech, trannies, silvers, EWA (buy each and every dip), brokers, semis, large cap value, defense and financials. Small caps and reits/real estate lagged.

GS JPM SGP MRK and MS hit new highs while PG MMM KO BUD ATI BNI GD AKAM and SUNW were all lower.

Market internals were strong with net 1,400 green on the NYSE and net 570 green on the NAZ.

About 9/1 up to down on the OEX and 8/2 green on the NDX.

Surprisingly, the Volatility indexes did not budge and still trade above their respective 10 day SMA's. However, the 2 day RSI's on the SPX/DJIA is back near the 95 level and I don't expect much upside for the balance of the week. Typically, the day after a trend day is choppy so it may be time to book some profits as we will eventually get some news that drives the markets lower.