SMELLY SOX

Markets are a mixed bag as crude is all of a sudden knocking on the $90 door again and that seems to be a place now where equities sell off. Seems like they were heading higher this morning after shaking off the Iran talk but when oil headed up the markets U turned.

Strongest sectors- utils, metals, oils, emerging markets and gaming while semis, airlines, trannies and homies lag.

Key stocks 16 up 24 down - leaders- VMW CME ISRG UA BIDU BG MA NYX DECK MSFT - laggards- NVDA CELG POT MER KLAC ICE MTW SMH CAT;

NYSE internals -385 net red;

NAZ internals - 480 net red;

NDX 35 WINNERS;

OEX 40 WINNERS;

IBD 100 -50 WINNERS;

IBD 20- 6 WINNERS- VMW EMC BLK MA FCX ABX- 14 LOSERS- NVDA CELG MOS SLB RIMM SYK JNPR AAPL AMZN GOOG NOV BIIB HPQ HAL;

VIX- flattish and about 5% above the 10 day SMA;

TWO day RSI on major indexes/ETF's:

SPX 30

DJIA 36

NAZ 28

NDX 30

RUT 24

MID 20

SOX 3

SMH 3

HHH 28

MSH 20

XLE 74

OIH 60

HUI 79

ITA 88

XLF 17

IAI 50

All of a sudden, TECH is not the place as semis sink another 2% and every component of the SMH is lower led down by BRCM AMAT ALTR and XLNX- each down at least 3.5%.

SOX now down 4% on the year while the SMH is flat; hard to believe given that the MSH is +16% and the NDX is +23%. Just a little food for thought as the semis were always looked at as "leaders."