PRE MARKETS

Markets are set to open higher as folks get all excited yet again about owning equities. For those who haven't seen or heard, the 50 SMA crossed below the 200 SMA on Friday and that is supposed to be a "death cross" as coined by some technicians.

The last time we had the 50 crossing under the 200 was back around July 19, 2006 when the SPX was near 1,260, and turned out to be pretty good time to buy. The 50 recrossed above the 200 in mid September when the level was 1,320 so who knows what this one means although I am playing for higher prices as stocks remain cheap compared to other asset classes.

However, I think we get better opportunities to buy as the markets have ramped the last few days. The VIX is more than 15% below the 10 SMA and the RSI (2) reading on the SPX is above 90 so holding powder here probably the move and looking for better prices over the next few weeks.

And checking the latest updates from Standard and Poors, the 2008 earnings have come down to $101.68 or a P/E of 14.6x.

IBD 100 stocks:

1- BIDU

3- POT

4- RIMM

7- AAPL

14-VMW

23- GOOG

29-NOV

37-MA

47-FCX

81-DE

82-ICE

95-NVDA

98-MTW