THE OPENING

Markets continue higher led again by big caps with the DJIA +23, NAZ+3 and SPX +3. The RUT and MID indexes are unchanged.

Strong sectors include silver stocks, metals, defense, airlines, utilities, value and real estate. Leading lower are oil service, internets, gaming and semis.

Key stocks are mixed with AAPL RIMM XOM LM BAM GILD BIIB higher and IMS MER GS LEH BSC CME ICE BOT GOOG BIDU and CSCO.

Market internals are generally green with NYSE +500 and NAZ +100. The OEX/NDX both in the green with about 55/45 ups to downs.

Notable losers include YHOO INFY MNST CSC GROW ROCM MFW and JNJ.

Volatility indexes higher by about 2% and heading closer to buy signals than sells.

The ITA defense/aero ETF is higher yet again on the AH deal and is now up about 14% on the year. I expect it to continue to move higher and will be adding on pullbacks.