MORNING TRADE

Markets are trading higher after flopping around earlier and the SPX has regained the 50 day SMA.

Strong sectors include utilities, trannies, defense, drugs, large cap value and financials. Laggard include metals, reits, brokers, airlines and oils.

Big winners include ESRX GRMN DELL LINTA GM EXC CSC MCD AFSI GSOL SPAN TBSI MTOX SIMO CMED and SPTN.

Big losers include FCSX NOV SNP SYNL TLVT SLB EMC HAL BHI GS AA ME PTEN RIMM CTXS AMAT MRVL and NVDA.

Volatility indexes are mixed with the VIX higher by 2% and the VXO lower by 4%.

Market internals are flat on the NYSE and slightly positive on the NAZ- The OEX is way good with 4/1 ups to downs while the NDX is about evenly split between winners and losers.

Lots of chatter on CNBC about taxes and how the government wants to soak the rich and increase taxes on private equity etc. Well why not eliminate all taxes on anything to do with the word "equity" and all the wealth will trickle down to the fireman and police.

So what if the worker pays a 35% tax rate plus payroll taxes; let the guys who buy and sell companies full time (their trade or business) pay 15% with out payroll taxes.