SMALL STUFF

Markets opened higher on the heels of some good news form Johnny Chambers at CSCO and the hope that sub prime slime is falling on to the back pages. The small caps have finally edged back into the green on the year as they are leading this morning up 2.4% while the SPX is higher by .7%.

Strongest sectors include gaming, brokers, metals, small caps, homies, real estate, airlines and semis- lagging are defense, drugs, oil service and software.

Winners- LEH CSCO BNI MER ATI AES EK MS COF GM GS BRCM WFMI EXPD NVDA GRMN WYNN AMLN RYAAY INFY PCLN PCR GMCR AVT TBSI.

Losers- WCG ALY SPSS CYNO SPEC KCI AMZN LAMR LINTA CHKP SYMC QCOM RTN TYC CBS BAX TXN BUD GD HAL and HON.

Market internals about as good as they get on the green side with about 1,600 net winners on the NYSE and 1,360 net winners on the NAZ.

The OEX with 70 up and 30 down while the NDX is 85 up and 15 down- ultra bullish.

Volatility indexes down another 5% and trading about 10% under the 10 day SMA. Yeah the old sell signal.

The 2 day RSI on the major indexes back to the low 80's level and nearing sell signals.

Up volume to down volume about 5/1 so all very bullish signs as the day traders no doubt will be buying all the dips.