MORNING MARKETS

Markets trade mixed led by metals, semis, trannies, internets, oils and utilities while retail, real estate, gaming, financials and drugs lag.

Of note:

Big caps beating small;

Financials weak with BAC JPM MA MTB WFC all red;

Brokers/Xchanges generally green led by BOT CME ICE MER GS NYX;

Consumers generally green led by DEO KMB MO;

Def/Aero acting well as ITA trades at a new 52 week high;

Drugs all red led lower by AZN MRK SGP;

Gaming all red led lower by WMS MGM BYD;

Metals all green with BHP FCX GG GSS PAAS SSRI all acting very well;

Oils have turned mixed with DVN FTO HOC NFX PWE VLO XEC XTO all good and PXD SLB RIG DO CAM OIH all red- oils over oil service;

Retail generally red with the exception of CROX HD and WMT;

Tech is mixed with AMZN CTSH GOOG INFY KLAC NVDA SNDK green and RIMM IBM MSFT AKAM AAPL all red;

Market internals are mixed with the NYSE a bit better than the NAZ - OEX about even between winners and losers and the NDX with almost 2 down for every 1 up;

Volatility indexes higher but still under the 10 day SMA's.

Interest rates down 5 bps on the 10 year to 5.149;

The markets are overbought as we haven't had a down day in a while and 2 day RSI readings on major indexes all show over bought areas. My strategy - buy the dips as it has worked for a while and suspect lots of folks are waiting for lower prices to buy.