BACK ON MONDAY

MORNING VOLATILITY

Markets trade all over the board and are presently lower with the RUT doing the worst and the DJIA/OEX hanging in the best. The latest news bringing the markets lower are the builders as rumors abound that some such as BZH may not make it.

Strongest sectors include defense, drugs and utilities while homies, brokers, real estate and internets lag.

Winning stocks - MDT EXC RTN AEP CL NVT CMG GRMN MT SPSS SIMO WFMI ADSK BEAS ATVI JNPR.

Losers- AKAM NVDA AMGN JOYG SNDK AIG TWX LEH WY ALL AA GS HIG ATI.

Market internals - ugly with 1,420 net losers on the NYSE and 1,000 net losers on the NAZ.

OEX with 35 green while the NDX has about 30 positive.

Volatility indexes up about 5% and trading 25% above the 10 day SMA.

I am off fishing shortly and will not be posting again until Monday morning.

THE CLOSE

Markets all over the board but closing red and giving back all of yesterdays gains. The DJIA closed down 150, NAZ -37 and SPX -19.

Rick Santelli, probably the best "analyst" on CNBC, explaining a new technical problem with the SPX, as it had an outside month in July but is closing at/near the low of the month and below the low of the prior month, perhaps indicating a trend change similar to what happened in March of 2003. Not sure I want to challenge Rick, but checking the monthly charts, the same thing happened in May of 2006 and February of 2007 and the uptrend continued as the SPX went on to make new all time highs.

Brokers crushed with GS BSC LEH MER all down big as folks seem to think AHM has major ramifications all over the space.

Tech was ugly all day led lower by AAPL AMZN BRCM CSCO GOOG IBM RIMM SNDK and TXN.

Retail also big red led lower by BBBY COH DECK KSS SHLD and TGT.

Oils were up big this AM but sold off in the afternoon with the rest of the market. Winners were APC CNQ DO FTO HOC SU while CVX NFX RIG VLO and XEC were red.

Market internals closed red after being very bullish earlier in the day. The NYSE/NAZ closed with about 1,200 net losers.

The NDX/OEX each had about 5 down to every 1 up.

The IBD 100 with better internals with 40 up and 60 down.

Volatility indexes up about 12% and back to buy signals on the major indexes.

Not to get too carried away on the Bull side, but markets are getting cheaper as the SPX probably trades near 15/16x earnings of 2007 and maybe 13/14X earnings of 2008 which will soon come into focus.

Also note the TNX with its rate down to 4.77%, so hopefully a flip from bonds to equities before to long by the asset alligators.

THE DIP

Markets have sold off a bit as some traders believe this rally is for selling. My guess is the dip is for buying as the internals continue fairly strong despite the red number on the NDX and the ugly tech/broker space.

Market internals on the NYSE continue strong at +1,400 and +355 on the NAZ; the OEX/NDX - still pretty bullish with 65 up and 35 down and the IBD 100, the best of the bunch with more than 70 in the green.

Other stuff:

Banks are strong led by AIB C JPM STT USB;

Brokers generally red with MER MS NMX TROW BEN - the exceptions;

Consumer non durables- strong led by DEO and MO;

Gaming green led by MGM and LVS;

Healthcare generally red led lower by DGX LLYMRK PFE WLP;

Media- DJ up 11% as the deal looks to get finalized tonite as no one knew nothing yesterday;

Metal stocks strong led by BHP FCX GDX PAAS SSRI;

Oils green with the exceptions of XOM VLO TSO RIG and CVX; - VLO beat the number this AM and announced they will buy back another $2b of stock this year;

Tech - ugly led lower by SMH HHH AAPL AKAM AMZN BRCM IBM RIMM SNDK TXN and YHOO; EBAY GOOG NVDA barely green;

Up volume 451 Down volume 247 and the TRIN back to 1.3 as the volume heads back to the losers;

HIGHER OPEN

Markets open higher on the heels of European markets and some good economic data. Leading higher are the small caps and mid caps.

Strongest sectors include gaming, metals, reits, utilities, airlines and drugs; lagging are semis, tech and biotech.

Winning stocks include RYAAY NVDA UAUA JOYG MICC GRMN GILD GM EXC CAT ETR EP VZ MS CF DRYS TBSI MTL DSX PCR CMED and EDU.

Losers include SIMO TLVT CMG AMZN AVP AMGN IBM BAX DIS TWX NSM IACI NTAP ERIC BEAS VLO TXN CME SYK and PG.

Market internals are very strong with almost 2,000 more gainers than losers on the NYSE and 1,200 net green on the NAZ.

The NDX/OEX about 4 up to each downer while the IBD 100 has about 9 winners to every loser.

Volatility indexes coming down again and today lower by about 5.5% and still overbought at 5% above the 10 day SMA's.

Targets- how bout the 50% retracement on the SPX - about 1,505.

THE CLOSE

Markets closed the day higher but off their best levels of the day. Best indexes included the SPX NDX and OEX while the DJIA and small caps lagged.

Strongest sectors included metals, oils, banks, semis, brokers, retail and trannies while airlines, internets and biotechs lagged.

Winners included SUNW GRMN ISRG MNST MICC F GM ATI XRX CL AMGN WFC DOW NSC PCR TEX CMG ACH and DRYS.

Losers included VSEA GSOL ATN UEIC AAPL AMZN CL VZ IBM CSC MCD HPQ TWX BIIB AKAM WYNN DISCA BEAS and SYMC.

Market internals closed strong with 900 net green on the NYSE and 340 net green on the NAZ; the NDX/OEX were far better at 3/1 winner to loser on the NDX and 8.5/1.5 on the OEX.

Volatility indexes crushed and down about 15% after the big run up last week. They are still way overbought at 15% over their respective 10 day SMA's.

Other stuff:

Ag group was great with BG DE IR MON MTW POT all way up;

Brokers very good with BSC ICE LM NYX acting best;

Healthcare mixed with major drugs generally lower with the exception of SGP SNY and JNJ;

Metals great with BHP FCX GDX PAAS SSRI all with nice gains;

Oils generally higher led by COP CVX FTO HOC TSO VLO and XEC;

Retail bounced led by COH CROX HD UA and WFMI;

Tech a mixed bag as AAPL AKAM AMZN EBAY HPQ IBM MSFT all in the red;

Volume was high at over 2B with 1.5 B up and .5 down; TRIN bullish at .55;

THE SNOOZER

Markets continue to trade mixed with lots of gyrations but very little travel in either direction. The best performing major market index is the NDX and the large cap growth index.

The small caps continue to act the worst.

Strongest sectors include metals, semis, banks and defense/aero while oil service, airlines, biotechs, small caps, reits and homies act the worst.

DJ is down $4+ on news from the WSJ that Rupert is unlikely to proceed on the offer based on the current vote count.

Winning stocks include LOGI LVLT GRMN MICC ISRG NSC NSM TXN ATI CL RTN WFC TEX PCR ABB ACH WFR BHP and EDU.

Losers include EK MS EP EXC DELL LEH BIIB WYNN BEAS UAUA SUNW AAPL BX NDAQ NMX MCRI IBM CVX and C.

Market internals have flipped to red with 340 net losers on the NYSE and 600 net losers on the NAZ. The OEX is 55/45 green to red while the NDX is better with about 60 winners.

Volatility indexes lower by 4 or 5% but still way overbought.

Wish there was more xcitement to report but for now I think bulls who sit and wait for higher prices will be nicely rewarded.

THE OPEN

Markets open mixed with the DJIA and SPX green and the NDX/RUT red.

Strong sectors include oils, semis, silver, metals, defense, tech and homies while internets, airlines, utilities, biotechs and small caps.

Big winners include LOGI GRMN PCAR ERIC NSC ATI NSM IP SLB BA TXN PCR ABB TEX EDU DRYS NVT ACH BHP and CF.

Big losers included- GSOL TLVT AMZN CMED OPY FLIR VZ AES CBS UBN AVP BIIB BEAS WYNN MSFT SUNW and AKAM.

Market internals are flat with the NYSE at +300 and the NAZ at -200.

The OEX is 50/50 while the NDX is 65 up to 35 down.

IBD 100 very bullish with 75 up and 25 down.

Volatility indexes coming back down slowly as the VIX is lower by 6.5% and the VXO lower by 4%.

Other stuff:

Ag stocks are generally green led by DE IR MTW POT CAT BG;

Banks have turned green led by BAC AIB MA WB WFC - CFC crushed again and down by almost 4%;

Brokers generally green led by BSC CME ICE GS NYX TROW BEN - lower are MS NDAQ NMX;

Healthcare green led by SGP SNY ABT - lower are WLP LLY- (WLP may be a buy here);

Media lower with DJ down a buck as no one knows nuttin;

Metals higher led by BHP FCX GDX GG SSRI;

Oils higher with the exception of XOM- XLE OIH APC COP DVN FTO HOC HP PXD SLB TSO XEC XTO all nicely green;

Retail green led by COH CROX GES HD SHLD UA WFMI - lower are TIF (buying here) and M-

Tech mixed with AAPL AKAM AMZN EBAY HPQ IBM MSFT lower and BRCM NVDA and TXN outperforming;

Up volume starting to trounce down volume and yes I am long YM and NQ.