THE CLOSE

Markets closed at their highs after giving dip buyers ample opportunity to buy earlier in the morning.

The drugs, metals, gaming, internets, banks and small caps led the way higher while semis, retail, homies and trannies led the way lower.

Big winners included MNST DELL FAST AMLN AMGN CSCO CTSH INFY EBAY MRK BMY GM EMC MCD and ABT.

The losers- LTD BNI F TFT ROK GD NSC FDX IBM VRTX AAPL ADBE KLAC AMAT ADSK and ROST.


Market internals gathered steam for most of the day and closed with 675 net green on the NYSE and 725 net green on the NAZ. Both the OEX/NDX closed with about 60/40 up to down ratios while the SPX was near break even.

The DJIA poked its head above recent resistance at the 12,600 level and now trades about 180 points below its all time high and with a 2 day RSI of 82.

I suspect next week will be the key tell as decent earnings/guidance will get us past the DJIA all time high. However, if the bank numbers underwhelm with substantial non performing loan issues, it could be a completely different story.

MIDDAY VIEW

Another boring day on the street as the DJIA is +29, NAZ -2 and SPX +2.

Drugs, biotechs, gaming, silvers, metals, internets, banks and large cap value are the strongest areas while tech, semis, real estate, trannies, homies and airlines are bringing up the rear.

Market internals on the NYSE/NAZ/OEX remain flat while the OEX has 50/50 up to down while the tech heavy NDX has about 40/60 up to down. The SPX internals are also flattish

The 2 day RSI on both the SPX/DJIA sitting near the 75 area while the volatility indexes are about 6 or 7 % below their respective 10 day SMA's.

I don't like to go against the simple trading rules but I am thinking again that if earnings and guidance are "decent" next week we may see a ramp higher in equity prices and new highs on the DJIA. Please note that we are about 200 points away from the old high on the DJIA and 12 away from the 6 year high on the SPX hit back in February.

MIXED OPEN

Markets have opened mixed with MRK/PFE driving the DJIA higher while most tech is in the red driving the NAZ lower.

Strong sectors include drugs, silvers, metals, internets, brokers and large cap value while semis, tech, real estate, homies, trannies and retail are weak.

Big winners include MRK PFE AMGN ABT COF MCD GE MNST CTSH AMLN INFY and FAST.

Big losers - VRTX KLAC LRCX ADBE AMAT ALTR LLTC AAPL MSFT INTC LTD NSC GD BNI TXN and NSM.

Market internals as flat as they get on NAZ and NYSE while the OEX is about 45/55 green to red and NDX about 40/60 up to down.

Volatility indexes hanging near the 12 area and a bit below their 10 day SMA's.

I expect a rather dull choppy day although my screens are full of red in the tech/retail sectors. So probably to do little unless you just want to take quick fades.

CLOSING RAMP

Sorry about the lack of posts but some important appointments kept me away from the turret for most of the day. Anyhow, glad I came through with the buy call near the open as that was a good opportunity to dip in a toe.

Strong sectors included biotech, oils, homies, trannies, emerging markets, software, drugs, semis, gaming and tech. Leading lower were airlines, real estate, utilities and financials.

Strong stocks included DXPE ZRD HURN ROCM VCLK CAM CTSH MEDI NSC BNI SLB S DOW and AMGN.

Big losers LTD AES EXC T IP AEP ETR USB RIMM XMSR BBBY TEVA and UAUA.

Volatility indexes down about 5% and back under their 10 day SMA's.

I don't expect much tomorrow but a tight range, however, next week could be interesting if the earnings come in better than expected. New DJIA HIGH maybe.

LOWER OPEN

Markets open lower and those 2 day RSI readings over 90 for 5 days in a row were a pretty ominous sign for the markets.

Strong sectors include biotechs, retail, drugs, oils and semis. Leading lower are gaming, real estate airlines, financials and brokers.

Key stocks- generally lower with the exception of MSFT GOOG MO and GE. The biggest losers include LM and MER.

Market internals bearish but not horrible as the NYSE/NAZ show a net of 1,700 losers.

The major market internals finds about 3 up to 7 down on the OEX; 4 up to 6 down on the NDX and 15/35 up to down on the SPX.

Volatility indexes are higher again and the VIX/VXO combo trades about 3% above their respective 10 day SMA's. The 2 day RSI on the major indexes is back to buy area on the SPX/DJIA/IWM as we now trade at/near the 10 level. I am starting to dip back in to some index ETF's.

AFTERNOON CHECK

Markets are trying to make a comeback after taking it on the chin this AM on the heels of bullish crude inventories and some talk of inflation rearing its ugly head.

Strongest sectors include airlines, oils, metals and drugs while homies, banks, real estate, defense and biotechs bring up the rear.

Market internals have also improved from the earlier bearish levels and now show about red net 1,300 on the NYSE/NAZ while the NDX/OEX/SPX trio shows about 7 issues down for every 3 up.

Key stocks also looking better with GOOG JPM BSC CME and BOT green while AAPL GS LM MER MS NYX ICE and MO are all red.

Vol indexes turning tail and heading down again after being up 8 or 9% this earlier this morning.

I still suspect this market is going to go higher on the heels of better than expected earnings and guidance as most companies continue to have low expectations.

RUDE CRUDE

Markets are lower this morning on no real news so maybe all those overbought readings are finally kicking in and traders are finally selling the rally.

Market internals very bearish with net 1,700 losers on the NYSE/NAZ and about 5/1 losers to winners on the major indexes.

The strongest sector is the metals with the oil patch stocks also green as the inventory number is about to print. Weak groups include biotech, homies, real estate, semis, gaming, internets, small cap value and defense/aerospace.

Winners include ACH CUTR UCTT RIO PCU SSRI AA GE CMCSA EP KFT DELL TLAB and AKAM.

Losers- CKFR AMLN VRTX CTSH MICC EXPE EXPD F DOW MS VZ GD CAT and HON.

Volatility indexes spiking about 5% as the VIX/VXO shoot up to the bar mitzvah levels.

Crude spiking on bullish crude numbers and no doubt this will also be bullish for stocks.

THE NUMBERS

Some interesting stats on my sheets yesterday and without further ado:

SPX 2 day RSI 99 - 5 days in a row over 90;

DJIA 2 day RSI 98 - 5 days in a row over 90;

MID 2 day RSI 99.5 - 5 days in a row over 90;


The NDX and the RUT have been a bit more volatile and are still oversold but are not in the "5 days in a row over 90" category.

The VIX / VXO are 9% and 11% below their respective 10 day SMA's and are on obvious sell signals.

The advance/decline lines are also in overbought territory and the TRIN has been at or under 1.0 for 6 days in a row and seven of the last eight. The Conners trading rule is to buy the markets when the TRIN closes above 1.0 three days in a row and the markets trade above their 200 day SMA and sell when the SPY closes above its 5 day SMA.

Bottom line, the markets are overbought and the SPX is just 16 points away from its 6 year high and the DJIA is just 220 points away from its all time high and everyone has forgotten February 27.

My take - trail stops on long trades but I suspect we are going higher as earnings/guidance probably comes in a bit better than expected as most don't expect much.

And isn't it just AROD's luck that when he can't get a hit he is all the rage on talk radio but when he hits 6 home runs in 7 games not a word to be heard as folks focus on Rutgers and IMUS.

SHRINKING RANGES

A brutally boring day in the market as the DJIA closed +5, NAZ +8 and the SPX +3.77.

Not much more needs to be said as the oils, metals semis, internets and tech led the way higher while gaming, biotech, homies, airlines, trannies and retail brought up the rear.

Market internals were strong most of the day but the markets refused to put on any kind of rally.

Winners included EP BHI INTC SLB CVX TXN and COP while losers were DOW HPQ TGT EMC CSC and WMT.

Obviously, the 2 day RSI numbers remain above 95 and now its about 5 days in a row while the VIX/VXO again dripped lower by about 3% or 4% and now trade about 5% below their respective 10 day SMA's.

The other news is that the daily ranges have shrunk and the SPX range today was no different as it was again about 5 points. And we all know that won't last so a big move probably coming one way or the other.

RALLY?

Markets continue to trade mixed with the R2K/NAZ/MDY in the green while the DJIA trades red as big cap stocks like HPQ CAT DD MCD UTX WMT MSFT and other large cap growth names continue to trade heavy.

Market internals, another story, as the NYSE has 550 net green and the NAZ +230.

Interesting also as the NDX 100 has about 60 in the green while the SPX/OEX combo has about 50% each way.

Sectors trading up include metals, silvers, real estate, oils, semis, internets, small cap value and financials while gaming, airlines, homies, retail, biotech and trannies trade in the red.

The market internals lead me to believe that the markets have a little rally for the longs later in the day as the "they can't get em down" crowd comes in and buys the market.

MORE GREEN

Markets open higher again as they refuse to dip despite four consecutive 2 day RSI readings above 90 on the major market indexes.

Strong sectors include metals, silver stocks, oils, real estate, biotechs, banks, brokers, gaming and internets. Trading lower are airlines and semis. Also weak are Indian stocks including SAY INFY and CTSH.

Key stocks in the green include CME ICE BOT GS MER MS MA BIDU RIMM and INTC.

Market internals are strong with a net 760 green on the NYSE and net 540 green on the NAZ.

Internals on the NDX are very strong with over 70 of the 100 in the green while the OEX has over 65 green.

Winners include ACH VCLK ROCM RVSN MEDI BHI ORCL LTD HD AXP AMAT and ADSK.

Losers- MFB UCTT GROW NTAP BEAS GRMN CTSH MRVL MICC DD DOW HPQ EMC and KFT.

Generally when the NDX /OEX internals are strong (today), one wants to buy the dips as that is typically the highest probability day trade. Especially when the financials act well (today).

And note how the CNBC "journalists" continue to root for the bottom in housing. I think one guest this AM had it exactly correct, wait for inventory to start going down, then you have a good chance of calling a bottom; not when CNBC declares it - just remember how many times they called the tech bottom in 2000/2001/2002 etc. They are cheerleaders not market timers or analysts.

CLOSING NUMBERS

In one of the more boring days this month, the Markets closed mixed with the DJIA +9, NAZ-2 and SPX +1. Note how the folks who bought the gap in futures on Friday and stocks this morning on the good jobs news got faded

Strong sectors included gaming, trannies, airlines, utilities, retail and real estate while biotechs, tech, semis, internets and financials were weak.

Key stocks were mixed with GS MER LEH JPM BAM MGM CNI green while GOOG AAPL YHOO SNDK CME NYX ICE and BOT were all red.

Market internals closed red with a net 480 red between NYSE and NAZ while the internals on the big cap indexes were also mixed with OEX 65/35 green to red and the NDX 45/55 green to red.

Volatility indexes were also mixed as the VIX/VXO combo now trades about 5% below their respective 10 day SMA's.

The big winners on the day were the railroad stocks as Warren Buffet announced a 10% position in BNI. Not sure why he thinks railroad stocks are undervalued but remember he also held KO and G (Gillette) through the bubble years of the late 90's when KO traded at double the current price. So not sure how much anyone is going to profit buying the rails this weekas they will no doubt trade lower soon enough just like AXP JNJ and the rest of his holdings.

GREEN SCREEN

Markets continue to trade slightly in the green with some the DJIA +24, NAZ +4 and SPX +3.6.

Strong sectors include gaming, trannies, metals, oils, emerging markets and large cap growth. Weaker ones include biotech, airlines, semis (sans INTC), brokers and homies.

Key stocks in the green include BAM GS OIH SGP while most of the brokers and banks are flattish and the xchanges generally red with CME and BOT leading lower.

Market internals continue mixed with +300 on the NYSE and -90 on the NAZ.

The recently lagging OEX (6 years) has the strongest internals with about 65/35 green to red while the NDX/SPX are a bit to the green side.

The sector that I find surprising today is the oil group as the OIH seems to want to leave old resistance at 150 in the dust. Still early but oil stocks are green while crude trades solidly red.

And of course never another down day in the EWA as it benefits again from the move in the metals.

GAP FILL

As expected, the markets opened higher but have since sold off and now trade mixed.

Strong sectors include trannies, on the heels of Warren Buffet discovering the railroad industry, gaming, metals, utilities, emerging markets, real estate, defense and internets while biotechs and brokers trade lower.

Key stocks are mainly mixed with MA RIMM INTC TIF MGM ICE BOT WYNN INFY IBN all trading higher while MS BSC C BAC GOOG and AAPL are lower.

Big winners include CNI BNI DOW NSC INTC MEDI AES FDX F ATI WYNN EXPD and VRSN while losers include LINTA EXPE MXIM KLAC CTSH HPQ S AMGN MDT RF and EMC.

Volatility indexes slightly higher.

Market internals - mixed with the OEX at 60/40 and SPX 260/240 while the NDX is about 50/50.

Looks like a pretty dull trade this morning unless one came in heavily long the rails and in for full disclosure I am/was long FLA and CNI.

MORNING POP

Markets are set to open a bit higher on the heels of a better than expected jobs report on Friday. Careful may be the good word of the day as markets are overbought and most volatility indexes are sitting between 5 and 10% below their respective 10 day SMA's. The 2 day RSI readings have been solidly above 90 for the past three day so do not be surprised by a sell the news reaction.

Also, keep in mind that the DJIA will only be about 200 points below the all time high at the open while the SPX will open about 14 off its February highs. Just food for thought as I suspect we may hit those numbers later in the month.