STABLE?

Markets continue to trade higher but volatile as the 10 year Bond seems to control every blip of action. Currently the yield is back to 5.153% and if it hangs here or lower equities probably go higher.





Market internals continue to trade bullish with a net 200 green on the NYSE and 350 net green on the NAZ.





The OEX/NDX tandex continue with a 3/2 up to down trade with semis, gaming, airlines, trannies, brokers, tech and retail the sector leaders. Leading lower are METALS, drugs and oils.





The DJIA has about 20 winners led by INTC GM and MCD as JNJ MRK DIS and AXP act the worst.





Biggest winners include GSOL AFSI CPLA ESI BCSI AKAM MXIM CELG INFY NSM TXN GM TYC CSCO and ETR.





Big losers include DIS KFT WMB JNJ MRK ATI TLAB EXPE VRTX FLEX BTJ DRYS MTOX CYNO and IDSA.





Volatility indexes pulling back about 6% ahead of the long 2 day weekend as some fear seems to be abated.

Note that as the QQQQ is higher by by about .6%, all of Cramer's new horses are red.

This is the final post of the day as I need some R and R at the beach.

OPENING VOLATILITY

Markets trade higher after a volatile pre market session as the futures traded all over the board. Rates look to be heading down this AM as the 10 year trades in the 5.11 area. And the SPX is at/near the 50 day SMA.

Strong sectors include semis, brokers, gaming, internets, biotech, tech, financials and airlines; leading lower are oils, drugs and metals.

Green stocks include NSM AKAM WYNN MXIM EBAY GRMN TXN ETR TYC MCD GS MER MS CME XTO APC MO GE TXN SMH IBM AAPL COST INFY DNA CELG GILD FDX and UPS.

Reds include TLAB JOYG RTN BHI BDK COP CVX IP XLNX WFMI PCAR NYX NDAQ BOT MA GOOG MSFT RIMM VLO FTO SGP and MRK.

The VIX is down 5% after 30 minutes while the VXO has barely budged. Not sure why but it is what it is.

Market internals have recovered as the NYSE number was initially red 1,000 and now trades flat. The NDX/OEX both flipped to green with about 6 up to 4 down. IBD 100 under performing as about a third of the group is higher.

I don't expect much market action today and higher markets next week as all the doom sayers get it wrong again.

THE CLOSE

Markets close at/near the lows of the day with the DJIA -199, NAZ -46 and SPX -27. The RUT/MID worse with 2% losses and the gains for the year are rapidly slip sliding away.

Worst sectors included homies, real estate, metals, utilities, brokers, biotech, trannies and airlines. Defense and banks were the best but still lower.

The new 4 horseman - AAPL up 40 cents, GOOG down 3, RIMM red 75 cents and AMZN red by 25 cents. So Cramer continues his stellar record of buying higher.

Market internals as bad as they get with NYSE red by 2,750, NAZ red by 1,725. The NDX/OEX/IBD 100 each had about 5 stocks in the green out of 100.

Winners included GD KFT EK VMED BMET MRVL AAPL ATHR DECK and NILE.

Biggest losers included SRSL RRST TBSI GSOL NSC ETR WMB EXC MER GS ATVI CELG JOYG MICC ERTS and GILD.

Love the genius on CNBC as they analyze the VIX/VXO and wonder if the direction of the markets are now changing and maybe we are in for some sort of a correction. Note to CNBC analysts, the SPX closed about 2 points off of its 50 day SMA and just had a big correction over the last few days. Everyone wanted a dip and now that they we get it well they are not so happy.

So Bill Gross is bearish on bonds as he predicts rates on the 10 year will climb to 6.5% over the next 3-5 years. Well I guess one could predict anything over 3-5 years and be correct but this is Gross so it has more weight.

I will not mention how far the markets are stretched to the downside or the 2 day RSI's as they haven't worked much of late because of the recent interest rate rise. But eventually we will go up and guess what, everyone will be saying "why didn't I buy when it dipped in early June."

THE HORSES

At around 9:35 AM, Cramer declared the new 4 technology horseman to be AAPL AMZN GOOG and RIMM and declared them to be the new go to stocks of the NAZ. Well I just hope Jimmy realized that they haven't exactly been laggards or unknown.

AAPL -126 Market Cap - 110B

AMZN -73.5 Market Cap - 29B

GOOG -524 Market Cap - 160B

RIMM- 167 Market Cap - 30B

Hopefully, he doesn't think these are undiscovered gems and I will monitor them weekly and compare them against the XLK and QQQQ. Year to date, AAPL is +48%; AMZN +86%; GOOG +14% and RIMM+30%, hardly a buy low sell high methodology.

Jimmy's favorite growth stock for 2007, NYX - down about 17% on the year as it started at $97.2 and now trades near $80. His spec stock of the year, LVLT also down on the year (1%) while his favorite value stock, MO, is up 6.5%. Not a great record for such a well respected guru.

AFTERNOON SWOON

Rates continue to rise and the major market indexes continue to fall. The DJIA is -150, NAZ -39, SPX -23 and under the 1,500 level and about 45 points off the recent highs. The RUT/MID both lower by almost 2%.

Market internals continue to worsen and the NYSE with 2,750 net losers and NAZ with 1,770 net losers. The OEX/IBD 100 stocks with 5 green stocks and the NDX with 10.

Sectors that are incurring the biggest losses include metals, homies, real estate, utilities, biotechs, brokers, trannies and airlines while corn wheat and soybeans are all green.

The VIX is up 13% for the day and the VXO is higher by 18% so fear has definitely hit the markets. Those numbers put the VIX/VXO tandem about well above 20% over their 10 day SMA's. Generally markets do not go straight down (especially from these over sold levels) although this time could be different, (lol).

Green stocks include ATHR DECK AAPL RIMM GD EK CSC MCD KFT BMET MRVL VMED AMZN APOL and PDCO.

The reddest of the red include ATVI CELG ERTS MICC WMB ETR NSC BNI MER BMY BAX SRSL GSOL TBSI DRYS RRST and VSEA.

The silver stocks also hammered today along with the physical metal and gold as the "they don't pay interest" becomes a theme.

The 2 day RSI's if anyone cares- DJIA 2, SPX 3, RUT 4, MID 5 and NAZ 4. The trading rule is buy em under 10 and sell em over 70.

Yes, I am dipping in again and buying more.

MORE SIGNALS

Markets getting a little stretched to the down side but the rising rates are becoming a bigger problem than I anticipated as they keep moving higher.

The 2 day RSI's on the major indexes as follows:

DJIA 4

OEX 4

SPX 5

RUT 6

MID 7

NAZ 6

The VIX/VXO both way over 110% of their respective SMA's:

VIX 15.86 and 15% over.

VXO 16.07 and 20% over.

Advance /Decline lines also getting into oversold territory as today is the third day in a row where the decliners lead advancers by a 3/1 or better ratio. That probably can't continue much longer.

STRANGE DAYS

Markets open mixed with the NDX being the strongest performer of the major indexes and the RUT the worst.





Strong sectors include oils, internets and tech while homies, real estate, airlines, biotechs, drugs, trannies and retail acting the worst.





Market internals are ugly again and are acting much worst than the major indexes. The NYSE show 1,500 net red and the NAZ 800 net red. The NDX/OEX both show about 3 stocks lower for every stock higher.

The 10 year Bond is climbing again and now sits at 5.057% while oil trades about a buck higher. Neither seems to be helping equities but I think if either comes in we may get a nice bounce in the major indexes

Winners include Cramer's new 4 horseman- GOOG AMZN AAPL and RIMM. Buyer beware as Cramer was also buying every "red hot" every day back in the go go days and that didn't end all that well.





Other winners include MA LEH MS BOT CME NMX COST BIDU OIH CAM VLO MCD BHP FCX and GD.





Red stocks- GS NDAQ NYX MER LM BSC SLG SGP MRK GILD AMGN DNA CELG MGM BYD and CTSH.





IBD 100 acts better than the rest of the market as they are evenly split between winners and losers. MR ATHR AAPL SYNL ARGN CYNO the IBD winnners and ARO CRDN PTNR SPSS VSEA TLVT the losers.





Volatility indexes higher again buy about 2/3% and still trading well above 110% of their 10 day SMA's.





Not sure why drugs and biotechs act so ugly but AZN DNA at new 52 week lows and PPH MRK PFE SGP SNY and DRG all at 2 day RSI's at or under 2.





Expecting a bounce in the major indexes but so far not coming. Maybe a TV switch over to the French open will get the markets higher.

THE CLOSE

Markets closed lower but well off their lows as the DJIA was -129, NAZ -24 and SPX -13.5. The MID's were the worst group closing down 1.2%.

All sectors were lower except for the brokers which closed up .25% despite all the major brokers finishing in the red except for MS.

Weakest were homies, trannies, oils, utilities, biotechs and silver stocks.

Some interesting stocks closed in the green including AAPL WMT NVDA SNDK COST DELL RTN SLB VZ GES ICE BOT CME JOE AZN TGT HPQ and MO.

Market internals were very weak all day with the NYSE closing with 2k more losers than winners while the NAZ closed with 1,150 net losers.

The OEX /NDX both closed with about 10 up and 90 in the red.

Volatility indexes closed about 10% higher and are/at buy equity buy signals.

Interesting how when the markets were going higher everyone wanted a dip to buy; now that it is dipping most are too scared to think about buying the dip.

PM LOOK

Markets continue to trade way lower with buy signals galore; just remember the other trading rule that says markets that are weak all day tend to close at/near their lows.

The much discussed rate on the 10 year is now at 4.974% and down a hair on the day.

Strongest sectors include brokers, reits, defense and semis while silvers, trannies, homies, metals, oils, airlines and utilities act worst.

Key stocks that are higher include BOT CME ICE SNDK AAPL XLNX NVDA DELL SLB MDT COST and WMT.

Market internals are very weak with a net of 3,700 losers between the NYSE and NAZ.

The NDX has 10 issues in the green while the OEX has about 6 green. IBD 100 also with 9/1 losers to winners with GES ICE NILE CLRK ESI AAPL APLX X SRSL and PCR in the green. IBD biggest losers include HWCC TLVT TSO BW DRYS WNR CENTX and IDSA.

The VIX is higher by 10% and trades about 11% above the 10 day SMA and the VXO is up 14% and trades almost 15% above the 10 day.

These numbers are now quite stretched and chances are pretty good for a bounce. Not saying today necessarily but soon.

The 2 day RSI's, YM/DIA 4, ES/SPY 7, OEX 8, RUT 12, MID 14;

Other stocks with low readings include C 1, JPM 2, GS 4, LM/MER 4, TWX 1, PPH 2, MRK 0, YHOO 3, DNA 4, IBM 2, HIG 1, SIAL 2, BBBY 1;

Highe readings- NVDA 99, GES 100, APLX 100, PCR 98.

So for all those who wanted to buy the dip- well its dipping.

SIGNALS

Well if you try to buy lower and sell higher, today may be your day. Buy signals have hit the DJIA with a 2 day RSI reading of 7 and even the volatility index buy signals have triggered.

The VXO is up over 10% and now trades at about 11% above its 10 day SMA. Another Conners Volatility index buy signal is when the 5 day RSI on the VIX/VXO trades above 70 and that has also hit.

Lots of bearishness on TV as Pisani et al worry about rates, European markets and chances of a Fed rate increase. Me, I will just follow the signals and let taut TV be bullish higher and bearish lower.

THE GAP

Markets gap lower, way lower on the heels of some shrewd comments from MS regarding a coming 14% dip in European equity markets. Not sure what one is supposed to think if you recently bought equities through MS but I guess they have no problem with it.

Checking the stats on Wednesday gaps, the answer is 79% of gaps fill on that day. Not sure I would play it that way today but maybe we get half a gap fill.

Strong sectors include brokers with everything else pretty in red or pink. Others lower but out performing include internets, drugs, software, defense and financials; the worst groups are utilities, homies, trannies, real estate, airlines and small cap growth.

Market internals are very ugly with about 1,900 net losers on the NYSE and 1,500 net losers on the NAZ.

The NDX is out performing the NDX with about 15 in the green while the OEX has about 8 green.

The DJIA with 4 up and 26 down led by T VZ CAT and JNJ while AA IBM BA HD and MMM act worst.

The IBD 100 with 12 green including GES SRSL PCR X MTOX ATN MTW DECK AAPL VSEA ESI and HOC. Big IBD losers include TLVT IDSA DRYS ELP GSOL AKH and HDNG.

The 2 day RSI on the DJIA is 10, SPX 14, OEX 13 and NAZ 18.

Volatility indexes finally ramping higher (7%) as the VIX/VXO both about 8% above their 10 day SMA's.

THE CLOSE

Markets close lower but well off their lows and their highs. The DJIA closed -80, NAZ -7 and SPX -8. The RUT/MID's underperformed and the NDX was down a point on the heels of green numbers from GOOG AAPL AMZN NVDA BRCM CSCO and AMGN. How bad can the markets be if those stocks were green? And with all of CNBC's cheer leading and bullishness, I don't think they mentioned once how relatively well the NDX acted today. I guess those stocks are immune to higher rates. As I type the NQ futures are unchanged for the day while the DJIA closed down 80.

Strongest sectors included gaming, silver, tech, airlines and biotech while real estate, utilities, homies, retail, small cap value and brokers acted worst.

Big winners included TLVT GES SYNL ARGN BIDU EK BUD DOWN CSC BDK and JOYG while BBBY FLEX WFMI EBAY HD S DD ETR AKH SNHY MTOX CLRK and FCSX brought up the rear.

Market internals were lousy all day and closed with a net of 1,600 losers on the NYSE and 860 net red on the NAZ.

The NDX closed with 3 down to every 2 up while the OEX was 4 down to every 1 up.

Volatility indexes closed up about 3% and trade at about 3% above their 10 day SMA's.

Stocks/ETF's that may be worth a shot here with low 2 day RSI's include DIA -22, C -5, COST -1, PPH 7, MRK 0, JOE 3, HIG-2, TWX-5, BBBY-1;

I suspect that the sell off was more due to over bought market conditions than fear of rates going through the roof. Rates seem to be running into resistance here and keep in mind that in June of 2006 the rate on the 10 year went to the 5.25% level.

NOON SWOON

Markets continue lower as all the morning blips higher have been faded. The DJIA is -108, NAZ -20 and SPX -12. The RUT/MID's are lower by about 1% and under performing the big caps.

Strongest sectors inlcude gaming, airlines and tech while semis, homies, real estate, utilities and retail lag.

Winners include LEH CME NMX PG GOOG BIDU AAPL MGM INFY and BHP.

Market internals are very weak with a net 1,760 losers on the NYSE and about 1,200 net losers on the NAZ.

The NDX has about 3 losers to every gainer while the OEX shows 15 up and 85 down.

Big cap winners inlcude BUD EK DOW AMGN CSC AMZN ATVI GOYG PCAR UAUA while losers include BBBY FLEX MICC BEAS XRAY DISH NSM DD HD LTD TXN NSC BNI and MO.

Rates continue to inch up and the 10 year is at 4.972% and higher by about 4.5bps today. It bears watching but I don't think rates will explode higher.

The 2 day RSI on most of the major market indexes stand in the 20 area and are approaching a spot where a dip may be appropriate. VIX/VXO higher by about 5.5% and trading about 5% above their respective 10 day SMA's which also suggests a point to dip the toe.

Stocks that may be worth a look here include MO BAM (recent 3/2 split) COST C and SGP.

MORNING DIP

Markets open lower supposedly on the heels of the Fed Head speach earlier in the morning. I will go with the over bought levels causing profit taking and reversion to the mean.

Strong sectors include tech, gamin (on the heels of MGM potential break up value), wheat, soybeans and corn while homies, retail, metals, small cap value and real estate act worst.

Key stocks all lower with the exception of MGM PG GOOG BIDU AAPL CME LVS ICE and INFY.

IBD 100 winners include FTK BCSI MTOX SNP PCR and the losers being AKH FCSX MICC CLRK COH and SPSS.

Market internals are ugly with a net 1,200 losers on the NYSE and 870 net red on the NAZ.

The NDX is 30/70 up to down while the OEX is about 4 to 1 losers to winners.

Volatility indexes up about 4% and trading about 3% above their respective 10 day SMA's.

Low 2 day RSI levels include C 5, COST 1, MRK 0, BBBY 1, APOL 4, VRTX 1.

Bounces would not surprise me but I expect them to be sold today as the markets need a rest. They are/were very overbought.

It may be a time to check out trading some other markets like Wheat, Corn Soybeans or Silver. They are all very volatile and are not linked to the movement in equities.

THE CLOSE

Markets closed at/near the highs as the early morning weakness and over bought conditions were shrugged off by the dip buyers.

Strongest sectors included oils, homies, retail, gaming, mid caps, large cap growth and tech; lower were airlines, bio, trannies, metals, brokers, banks and drugs.

Big winners included WMT SLG ICE NYX BOT AAPL GOOG SNDK GE OIH CAM DVN APC XTO MGM EWA BHI SLB S HAL HD CDNS CTAS ISRG TLAB and AMZN.

IBD 100 had about 3/2 winners to losers with EML SNHY TBSI SYNL WRNC DWSN the winners while ARGN SIMO VIP TTEC TWIN and EDU the biggest losers.

VRTX and MRK with 2 day RSI readings of about 1.

Market internals were fair on the NYSE with 450 more winners than losers while flat on the NAZ.

The OEX internals were about flat while the NDX was about 3/2 green to red.

Volatility indexes were higher and trade near their 10 day SMA's.

The OIH is trading near the $175 level and many of the components are still cheap IMVHO; we may find the $200 level the next stop before Q4 as it is up about 25% for the year.

PM MIX

Markets continue to trade mixed as the Mids and the SPX trade higher while the DJIA/RUT trade lower.

Strongest sectors inlcude oils, silvers, the Aussie (new high), real estate, homies, semis, mid caps and large cap growth; leading lower are airlines, brokers, biotech, utilities, trannies, drugs and internets.

Key stocks are mixed with GOOG AAPL MSFT SNDK XLE OIH BOT ICE NYX LM SLG FCE.A MGM green while GS MER MS CME C JPM WFC JOE BAM AMGN DNA CELG FDX all red.

Market internals are mixed with a net 170 green on the NYSE and a net 270 red on the NAZ.

The OEX is about 2/1 red to green while the NDX is evenly split between winners and losers.

The IBD 100 is about 55 up and 45 down with SRSL SIMO ARGN CPA the big losers.

Big winners include CDNS CTAS SNDK WMT BHI NSM GOOG EMC SLB EML SNHY IDSA TBSI and DWSN.

Other than the above it is a slow go and a late afternoon pop would not be surprising as the old "if they can't get em down" thought comes into my head.

XTO XTO XTO

Markets open mixed but some very sector specific strength. Strong sectors include real estate, oils, semis, retail and some tech; leading lower are airlines, big bio, trannies, brokers, metals, drugs and utilities.

Big winners include EML SNHY CF RRST TBSI WRNC WMT NSM BHI GE GOOG CI CDNS TLAB ISRG GENZ AAPL AKAM GOOG and XTO.

Big losers include UAUA AMLN MICC JOYG APOL GRMN AES ATI EK AEP FCSX SPSS IDSA EDU CPA and LAYN.

Low 2 day RSI readings inlcude MRK UAUA and APOL.

The NDX internals are show the best with about 45 green and 55 red while the OEX shows 1 up to every 3 lower.

The NYSE and the NAZ internals are flat.

XTO, a long term favorite is up about 5.5% on the heels of some MLP and acquisition news. This has been a great stock with a terrific CEO and will probably be taken out before too long by one of the big oil companies. DVN APC CAM also acting well in the oil patch.

The VIX/VXO combo are higher and now trade above their respective 10 day SMA's.

OVER BOUGHT?

In the news, the Chinese markets are down about 8% and the futures are pointing to a lower open.

Gapping up - DIGE CELG CYCC ICFI SLR PALM NFI CDNS NVT ONXX YMI IMGN WMT; Gapping down- AMLN TELK CTIC CRAY RNVS DAL DNDN.

Briefing.com notes that B of A is out with research on CTSH and INFY noting "shares are trading at less than 1 standard deviation below their average historical next 12 months P/E /growth ratio. They note that in the past, this level has been an excellent point." I am long both and expect some nice gains from these levels.

Now, how overbought are the markets? - witness all the 90+ readings on the 2 day RSI indicators for the major indexes. In addition, check the daily breadth- I have been keeping stats for many years but rarely has the adv/dec line numbers been this strong over a five day period.

How good have they been? On Friday there were 1,112 net gainers on the NYSE, Thursday 589, Wednesday 1,271, Tuesday 885 and Friday May 25 1,304 net for a five day total of 5,161 net green over the last five trading days.

That is very over bought breadth and every one should watch for a reversal as those reading are not sustainable in my opinion.