HIGHER HIGHER

Markets are higher and begin to enter over bought territory on the heels of lower rates and lower inflation.

Strong sectors include silvers, metals, oils, wheat, corn, biotech, trannies, small caps and semis while drugs, reits and airlines lag.

Strong stocks include AMLN INFY AKAM PTEN MXIM EK HAL ATI SLB BHI ACH CLRK CNH BID FCSX and PTNR.

Weak stocks- GS ESI GSOL RRST CSC RF S CL USB SYMC ADSK LAMR WYNN UAUA QCOM GOOG and CROX.

Market internals are very strong again with the NYSE at +1,400 and the NAZ at +980.

The NDX with 85 winners while the OEX has 75 in the green.

Volatility indexes lower by about 5% and trading at about 5% above their respective 10 day SMA's.

Many of the oil stocks are now entering over bought territory and are showing high 2 day RSI numbers:

XLE 87

OIH 86

APC 96

CAM 92

DVN 91

FTO 95

HP 94

PXD 93

XEC 95

The major indexes also sitting with 2 day RSI numbers at/near 80.