BULLISH MARKETS

Markets seemed to like the the 50bps cut by our Big guy Ben as the DJIA gained 336, NAZ +70 and SPX +43. The RUT 2K was up the most of the major indexes, almost 4%, and is now in the green for 2007. We are also about 300 points from the old highs on the DJIA and 35 away from the all time highs on the SPX.

Glad I stayed with the bullish bent and bought stocks/etfs/funds on some of the ugly down days. Always thought that Ben did not want to be the guy who didn't prevent the crash of 2007.

Strong sectors:

Homies +6.2%

Brokers +4.7%

Retail +4.7%

Banks +4.4%

Trannies +3.9%

Small Caps +3.9%

Metals +3.6%

OIH +3%

REITS +3.%

Laggards:

Internets+1.5%

Drugs+1.75%

Utils +2%

MSH +2.5%

NYSE internals +2670

NAZ internals +1700

OEX- 98 WINNERS- LEH ATI GS COF TGT MS JPM SLB C LTD;

NDX- 98 WINNERS- NVDA MICC FAST WFMI INFY BBBY ROST JOYG APOL ISRG;

IBD 100- 98 WINNERS- ARGN NILE BBL HDB MA MT BHP FTO SID HDNG DRYS VDSI;

VIX down 23% and a mere 18% below the 10 day SMA;

Two day RSI' s of major indexes:

SPX 91

DJIA 94

NDX 84

RUT 88

The resistance was the 1505 area on the SPX and we are solidly above and the next stop/ test will probably be the old highs some time in the near future. The RUT may be the best way to play it as has the most catching up to do. Metals will probably also do well as the lower rates will probably sink the dollar further which will make commodities more valuable. Gold did hit a 27 year high today and $800 may not be that far fetched a target.

And Cramer said stay on the sidelines for this announcement- yikes, he nailed it again.