OVER BOUGHT

The QQQQ just hit a new 52 week high in the pre market as equities are set to open higher yet again.

Major indexes are trading with 2 day RSI levels at/near 90 while the oil patch seems even more extended with the XLE/OIH hitting new all time highs on Friday.

I did not sell out my OIH (+27% for 2007) expecting higher prices but did sell some calls as a short term top at/near these levels would not surprise me.

Gapping up - AAPL LXRX VICL CMED CO DDSS ORCT CVTX IMOS CRNT STEM JSDA CHL SAP AA MRK AA MS LEH;

Gapping down- ENCY NMX SLGN CDNS COST GRMN MICC HAL ROK FDX;

AAPL up on the heels of the announcement of an 8 hour talk time on the IPHONE and talk of an AAPL navigation/entertainment system for automobiles.

GE supposedly looking at DJ in a joint bid with Pearson.

GS down grades the coal sector to cautious from Neutral.

The 10 year Bond rate is down to 5.142% which may move the dollar lower and metals higher.