THE CLOSE

Well the demand for equities certainly seems to have trumped the higher stamp tax in China and everything else for that matter. The DJIA closes at a new high and hits a new inter day high while the SPX closes at a new closing high but is again no where near the inter day high of 1,552 from March of 2000. The NAZ, still about 50% more to go.

Despite what you might hear on CNBC, tech was not a leader today despite the nice action in GOOG and APPL. The leaders were corn, wheat, real estate, oils, brokers, utilities and internets. Leading lower were semis and drugs.

Big winners included- CNG WNR NILE CF POT TEX EP CAT EMC EXC AES JOYG GRMN BIIB VRSN FISV and AAPL.

Losers- QCOM MRVL MXIM VRTX AMAT ABT MRK MCD GD BAC INTC BAX DXPE BAP PTI PTNR BWLD and MTOX.

Market internals finished very strong with a net 1,275 green on the NYSE and 270 net green on the NAZ after being net red by over 1,000 during the morning.

The NDX closed with about 3/2 up to down while the OEX was 4/1 up to down.

The VIX/VXO were both lower by about 5% and now trade about 5% under their respective 10 day SMA's, an area that the markets typically tread water.

Some 2 day RSI readings include:

S 100

EMC 100

MA 97

XRT 95

SHLD 98

PVH 96

FCE.A 98

GOOG 99

AAPL 95

FTO 95

ITA 94

AMGN 95

BIIB 95

DJIA 92

SPX 89

MRK 4

MCD 2

BAX 2

EXPE 2

VRTX 4

BAP 3

CELG 4

Other news of interest, TROW CEO Rogers says Bancroft family should agree to sell DJ to NWS since they have no better alternatives and Rupert may even raise the price to get the deal done. Can't imagine any way that another business network would ever be able to top the genius that is CNBC and their anchors who continuously squawked about the new all time high on the SPX.

One other interesting new item was the Fed Futures indicating the Fed will hold rates steady into quarter 4 and a 50% chance of a cut before year end. Not quite the Cramer scenario of a cut in May of 2007.