AFTERNOON TRADE

Not quite the close but my take is the markets are still a bit skittish as some selling has reappeared in the final hour. In addition, crummy action in the big banks as BAC C MTB WB WFC are all lower while the XLF trades flat. Brokers/xchanges generally higher led by GS CME BEN TROW ICE NYX NMX.

Strong sectors- China, internets, emerging markets, tech, oils, biotech and growth stocks while homies, banks, real estate, retail and drugs lag.

Key stocks generally higher (30 out of 40) led by BIDU GRMN POT AMZN ICE APPL KLAC CELG- lower are UA GE TIF C COST MGM BAC MER LVS BG WYNN;

NYSE internals +650;

NAZ internals +590;

OEX 65 WINNERS;

NDX 75 WINNERS;

Big Winners- BEAS ERTS AMAT GRMN AKAM WFMI CHRW ESRX CHKP GM DOW EK F AVP GOOG GD DELL GS BAX CSC TNE TBSI EXM CF SLT DRYS BCSI VSEA HDB CMED;

Big Losers- WHQ NILE CMG OII FTK PCP ARGN CAM VIVO MR ATI GE C COF ABT EP IP CBS WFC TGT SEPR SPLS SNDK COST PETM PTEN LARM SIRI INFY UAUA SBUX DISH;

Volatility indexes down about 6.5% and trading near the 10 day SMA's;

Two day RSI's on major indexes:

SPX 61

DJIA 60

RUT 52

MID 47

LARGE GROWTH 70

SMALL VALUE 43

NDX 67

NAZ 64

Two day RSI's on various stocks:

BSC 10

AMGN 96

GENZ 99

GE 7

MGM 21

ABT 0

BHP 97

EWA 93

GG 96

APC97

HAL 98

OIH 92

XLE 80

XTO 95

SNDK 5

TXN 5

GOOG 91

I suspect higher prices and new highs next week assuming companies that report have nothing to horrible to say.

THE OPEN

Markets open the day slightly higher with the DJIA +43, NAZ +22 and SPX +5. The biggest news of the day, the ORCL hostile bid towards BEAS and consumer confidence coming in at 82 v 84 consensus.

Strongest sectors include china, semis, metals, oils, biotechs, internets and utils while homies, airlines, retail, oil service and drugs lag.

Key stocks generally higher led by POT KLAC GRMN ISRG AAPL RIMM MA CELG AMZN and MSFT while GE TIF COST MGM LVS UA BIDU MS and WYNN lag.

NYSE internals +840;
NAZ internals +555;
NDX internals 80 WINNERS;
OEX internals 75 WINNERS;

Biggest WINNERS- EK GM NSM F DELL NSC MSFT BEAS AMAT NIHD LRCX GRMN ERTS EBAY AAPL TNE SLT TBSI SNP CF VSEA;

Biggest LOSERS- WHQ NILE CMG VIVO OII TRMB MTL ATI GE COF EMC ABT LEH TYC C TGT COST SPLS PETM FAST LAMR INFY;

Pretty hard to tell how the day will end up as internals look pretty good while financials are fairly mixed. Tech looks like it wants to regain the lead role but its Friday. My guess we bounce around in a fairly tight range.

HERE WE GO AGAIN?

Around 1:00 PM EST, the NDX started a swift move down on what appeared to be no news. Shortly after, rumor of a bomb and then news about some German banker talking about higher inflation and higher rates and finally a rumor of a tier 1 firm downgrading big cap tech and BIDU. Before long, AAPL was down 10, AMZN -5, BIDU -40 after trading at all time highs and on and on. GS had a 12 point range and closed down 6 after being up over 3.

Anyhow, all the major indexes did an about face and closed sharply lower after the SPX/DJIA were trading at all time highs earlier in the morning.

The DJIA closed down 64 after being up about 120 and a range of about 230 while the SPX was down 8 after being higher by 14 and a total range of 30. The NAZ closed down 39 after being up about 35 and a round trip of about 80. Just like old times.

Strongest sectors were metals, oil service and utils while internets, semis, airlines, tech and emerging markets lagged.

NYSE internals -750;

NAZ internals -1190;

OEX 35 WINNERS;

NDX 20 WINNERS;

BIG WINNERS- ROST JAVA RYAAY APOL TEVA JOYG F GM WMT C RTN LTD EXC COF CYNO MTL SLT SNP OII WNQ BBL;

BIG LOSERS- FSTR BIDU HDNG CTRP AFSI MR CRNT TBSI DSX CMED ATI TXN BA CI GS PEP CAT TYC ROK INFY SNDK AMZN ISRG RIMM NVDA CTSH CELG;

The VIX up 13% and near 19 and about 6% above the 10 day SMA. The VXN/VXO had higher spikes in volatility and those indexes are a bit more stretched above the 10 day SMA.

Two day RSI numbers on the major indexes:

SPX 28

DJIA 24

NDX 20

COMPQ 23

RUT 19

MID 32

OEX 29

So maybe time to dip/but shortly as the buy signals start to line up.

OPENING STUFF

The bull market rolls on as retail sales numbers generally disappoint but WMT does better than expected and is leading the DJIA higher along with GM.

Strong sectors- china, metals, aussies, emerging markets, internets, utils, oil service and homies while airlines, reits, drugs and brokers lag.

Key stocks, about 26 out of 40 are higher led by BIDU POT MA BAM GOOG C COST AAPL LVS and WYNN while NVDA BG MTW CELG CAT DECK and MGM lag.

NYSE internals +1122;

NAZ internals +515;

OEX- 75 WINNERS;

NDX -70 WINNERS;

BIGGEST WINNERS- JOYG ROST EBAY ERIC JAVA NTAP F GM WMT EMC CSC LTD RTN HAL GOOG C SLT SNP MTL CYNO TBSI BHP VIP BBL PCU;

BIGGEST LOSERS- NVDA OMCL AFSI VIVO CMTL PCLN MTW Y ABT BA TGT PEP CAT WFC MCD FAST INFY SNDK CTSH ESRX QCOM LRCX;

Vol indexes- down about 2.5% and still well under the 10 day SMA;

And checking the numbers, aside from the NAZ, which is up about 17% year to date, the MIDCAPS are leading up almost 15% ytd, while the big cap OEX is up only 11%. The DJIA, up almost 14% also now lagging the midcaps. Small Cap growth surprisingly leading Big Cap growth 22% to 16% YTD.

The big Macau gamers, LVS/WYNN have had a big year up about 57% and 69% respectively but trailing MGM, the Vegas strip play, which is up 72% ytd.

THE CLOSE

Markets closed mixed with the DJIA lower by 86 and the NAZ higher by 8 as BA AA and AIG dragged down the DJIA.

Strongest sectors today oil service, metals, biotechs, gaming, tech and large cap growth while semis, banks, defense, trannies, utils and drugs lagged.

NYSE/NAZ internals closed just a tad to the red with a total of 300 net losing stocks;

NDX 50 WINNERS;

OEX 35 WINNERS;

My Key stocks- half higher half lower- Leaders- COST WYNN CELG LVS GOOG BG IBB MA RIMM ISRG; Laggards- MS KLAC MTW JPM WFC CAT POT NYX C GS AMZN;

My take on the day- its a bull market and dips are for buying; oils and metals especially strong today and I expect that will keep up through the end of the year. Also, my $200 target on the OIH was close to getting tagged today so I am upping my year end target on OIH to $220.

MOVING UP

The DJIA is lagging the other indexes as a big chunk of the DOW, BA, has run into a little problem with its Dreamliner plane. BA is down over 3% and is hitting the DJIA by about 25 points. Other DJIA losers include AA AIG HON CAT UTX JPM C GM DD AXP and HD.

The TECH heavy NDX/NAZ are flat or slightly higher while the SPX is down about 6 points.

Strong sectors include metals, oil service, biotech, gaming, real estate and reits while defense, banks, airlines, trannies and semis lag.

NYSE internals red 550 after being about red 1,000 earlier in the session so creeping up and maybe indicating a little jig into the close;

NAZ internals red 490;

OEX 30 WINNERS;

NDX 40 WINNERS;

SPX 160 WINNERS;

BIGGEST GAINERS- COST AKAM SIRI WYNN CELG BHI CSC EMC TYC GOOG BUD ORCL BCSI VSEC HDNG CRNT TBSI PCU FTI;

BIGGEST LOSERS- HMSY LAYN OMCL HURN TKC PCP ATI AA BA RF MS AIG WY PETM PCAR XLNX WFMI ATVI KLAC;

Key stocks - 14 up and 26 down- Leaders- COST WYNN LVS CELG BG MA GOOG IBB MER ISRG; LOSERS- KLAC MTW MS NVDA WFC CAT NYX JPM GRMN GS;

For folks that are under invested that wanted to buy dips- well its dipping- 2 day RSI numbers now near 50 on major indexes and note the strength in the NDX/NAZ- the place to be (probably) once we start heading north again (this afternoon?). The weakness in BA and the aero/def group may be giving a little opportunity to buy the ITA which has been a great performer.

LOWER OPEN

Markets have opened lower this morning on the heels of some warnings from CVX and VLO and some underwhelming numbers from AA.

The DJIA is down 60, NAZ -3 and SPX -7. RUT/MID's about in line with major indexes as growth out performs value yet again.

Strong sectors include metals, gaming (WYNN+2.25%, LVS +2.38%) and biotechs while oils, brokers, airlines, banks and trannies lag.

Key stocks show 14 up and 26 down as COST LVS WYNN ISRG CROX GOOG lead and POT MS GRMN KLAC RIMM C JPM lag.

NYSE internals 950 net red;

NAZ internals 630 net red;

OEX 25 WINNERS;

NDX 38 WINNERS;

BIGGEST WINNERS- COST AKAM WYNN MCHP INFY MICC ROST LINTA SNDK CSCO TYC CSC PEP AES CCU AMGN MSFT KO BCSI VSEC TBSI DSX PCU DRYS;

BIGGEST LOSERS- CPLA LAYN HMSY MTL HURN AFSI WY AA IP CVX RF MS HIG AXP COF AIG PETM XLNX XMSR AMLN WFMI ATVI APOL;

VIX/VXO soaring higher by almost 8% and right back at the 10 day SMA- not sure where all the fear comes from;

Market certainly is over bought and a pullback here should not surprise anyone. It probably won't last long as many a hedge fund is probably lagging the averages and would welcome the opportunity to buy a dip.

Oil numbers at 10:30 and if the numbers are bearish I intend to dip into crude or the OIH as these sell offs are typically quickly bought.

MORE MATH

Hard to believe but the markets are once again over bought and sell signals are firmly in place on the VIX/VXO and the 2 day RSI numbers are also signalling a time to lighten up.

The VIX/VXO are both about 9% under their respective 10 day SMA's and the 2 day RSI numbers on the major indexes are as follows:

SPX 85

OEX 87

DJIA 89

MID 83

RUT 80

NDX 97

COMPQ 97

Large Cap Growth 96

Large Cap Value 78

Small Cap Growth 92

Small Cap Value 69

Another interesting tidbit, New Highs on the NYSE today (WSJ), 225, vs. 258 last Friday and 288 last Monday, so as markets have made new highs, the New High list has actually shrunk and is in a Negative Divergence with the Big Cap indexes.

So not saying we are going straight down but just something to watch and maybe time again to tighten the stops (broken record) on trading positions.

Captain Kirk with a nice list of randoms and one I found interesting was this from Optionetics which found the SPX to be about 30% under valued. How so, easy, take 1 divided by the 10 year yield (4.65%) and multiply it by the estimated 2007 earnings on the SPX - $94.2. The result - 2,025 or about 30% higher than today.

THE RAMP

Markets started moving up about 2PM when the fed minutes came out and yikes straight up as GS hits a new high at/near $240 and my $250 year end target may be hit before the end of the week. About 80 points straight up since mid August.

Strongest sectors metals, aussies, china, oils, brokers, utils, emerging markets, defense and internets while semis, retail and drugs lagged.

Key stocks- 26 out of 40 in the green led by POT GS GRMN XOM UA LVS CELG BG and CAT; LOSERS- KLAC CROX NVDA RIMM DECK TIF WYNN MTW and COST;

Not much to say about the markets except equities IMVHO appear to be the best place for investable cash- probably cheaper than bonds, r/e, and metals; and the trends are up and bullish season around the corner. PE on major indexes probably in the 15 area and earnings moving up and likely to beat estimates.

FLIPPING AND FLOPPING

Markets continue to trade flat with growth and big caps out performing. The DJIA -2. NAZ -2 and SPX FLAT.

Strongest sectors- metals, oils, china, biotech, defense, gaming and utils while semis, retail, real estate and financials lag.

NYSE internals +150;

NAZ internals -320;

NDX 40 GREEN;

OEX 50 GREEN;

BIG GAINERS- ATI EMC COP NSC XOM GD IP AA HAL MSFT XMSR SIRI NIHD EXPD AKAM MNST ERTS PTEN INFY GRMN;

BIG LOSERS- MCHP SHLD LLTC KLAC NVDA SNDK LRCX AMAT MXIM JAVA LTD BDK TYC TGT C NSM MER MS BUD HD CSC WMT;

VOL indexes FLAT;

More boredom as markets flip flop between green and red and consolidation maybe the key as markets maybe getting ready for the end of year ramp I expect.

FLAT OPEN

Markets open fairly flat with the big caps leading and the RUT/MID/NAZ finally lagging.

Strongest sectors include metals, biotechs, oils, gaming, utils, trannies and airlines while real estate, semis, reits, retail and financials lag.

The Shark key stock group has negative internals with 13 up and 27 down. Higher are POT GRMN LVS MSFT and CELG while MTW KLAC RIMM NVDA C MER and MS are lower.

NYSE internals show 240 net green;

NAZ internals show 200 net red;

NDX- 40 WINNERS led by EXPD MNST XMSR NIHD GRMN JNPR ERTS INFY MSFT and CELG; LOSERS- MCHP S SHLD KLAC RIMM NVDA LAMR LLTC LOGI and IACI;

OEX - 55 WINNERS- led by EK MSFT AA GD MRK XOM IP VZ EMC DOW; LOSERS- S C LTD MER NSM TGT MS BDK HD USB BAX PEP;

Up volume- 130 M

Down volume- 111 M

VIX/VXO both down about 1% on the heels of the mixed market and both about 4% below their respective 10 day SMA's;

Looks like the markets have stalled out here and will probably trade lower in the near term. IMVHO any dip is an opportunity to buy as I suspect we will eventually rally through the end of the year as under invested folks buy for the seasonally strong period. I also suspect earnings come in better than expected which will also give the markets a little juice.

Finally congrats to Joe Torre for a nice 12 year run, but when a manager loses 13 out of the last 16 playoff games it is statistically significant and probably means its time to go.

Finally, AROD, time to stay as going to a 4th team for the last part of your career is not a good move - stay in the Bronx.

THE BARKER

Jim Cramer with a column this morning on his tech horses and they have been very good to any subscriber who took his advice on these four stocks. Checking back to his original call on June 7, the following are the results:

GOOG from 524 to 610, a gain of 16%

AAPL from 126 to 168, a gain of 33%

RIMM from 56 to 118, a gain of 111%

AMZN from 73 to 96, a gain of 30%

During the same time period, XLK was higher by 8% and QQQQ up 13%.

So kudos to Jimmy, now my question is why doesn't he own any of these stocks as he mentions in his disclaimer that he has NO POSITIONS.

CLOSING LULL

Markets close the day lower except for the tech heavy NAZ which closes higher on the heals of some nice moves in GOOG AAPL AMZN and RIMM.

Strongest sectors were gaming (MGM+5.7%, LVS +2.3%), airlines, tech, internets, semis, defense and large cap growth while homies, oil service, metals reits and brokers lagged.

Market internals were weak all day with 1,000 net losers on the NYSE and 470 net red on the NAZ.

NDX with 40 winners and OEX with less than 30 winners.

Biggest gainers- GOOG MCD GD HPQ ORCL CBS CAT AKAM BRCM JAVA GRMN AAPL ISRG RIMM SYMC VSEC EXM NILE DRYS TBSI VDSI SYNA TRMB;

Biggest losers- CRNT DWSN EDU SLT TKC SNP PAY MER S COF LEH F LTD CMCSA LTD TGT WFC WY;

Vol indexes higher by about 3% and still slightly under the 10 day SMA;

Pretty boring day as the only excitement was in tech and gaming. Financials and brokers were very weak from the open and closed near the bottom with BSC -3.75%, LEH -2%, MER-3.33% and MS down more than 1%.

SNOOZEFEST

Markets continue to trade lower with the NAZ out performing the SPX/DJIA and tech again leading the way.

Some stuff of interest such as 2 day RSI numbers- overbought stocks:

ICE 98

NDAQ 97

NYX 963

SNY 97

ISRG 100

FLR 96

HOC 97

VLO 96

COST 99

SHLD 100

AMZN 95

BRCM 96

RIMM 98

YHOO 97

GD 96

Oversold Stocks - 2 day RSI numbers less than 5:

MO 5

BA 3

NVS 2

CVC 3

NBR 5

EBAY 2

PTEN 3

TLAB 1

NIHD 1

SII 4

THE OPEN

Markets are open but they are hardly doing much in the early trade. The DJIA is -17, NAZ +2.5 and SPX -4. RUT/MID about in line with the SPX.

Strongest sectors airlines, defense, internets, semis tech and utils while oil service, metals, emerging markets, reits and homies lag.

NYSE internals - 800 net red;

NAZ internals 370 net red;

NDX 40 WINNERS;

OEX 33 WINNERS;

Key stocks/etfs- 17 GREEN 23 RED;

Key stock winners- GRMN ICE ISRG RIMM NYX AMZN AAPL MTW CAT COST;

Key stock losers- MER XOM POT WYNN BAM WFC LVS C MS MA BAC;

Biggest WINNERS- GRMN AKAM BRCM ISRG RIMM SYMC AMZN AAPL UAUA LAMR GD HPQ CAT RTN GOOG XRX INTC IBM TRMB TBSI GLNG DRYS VDSI CTRP FMCN SYNA NILE;

Biggest LOSERS- TKC CRNT DWSN SNP OMCL BBL PAY NOV MER LTD S TGT AA COF EK NIHD MICC AMLN CTSH LVLT S BIIB GILD APOL EXPE QCOM;

Volatility indexes up about 3 or 4% and trading near the 10 day SMA;

Internals are lousy and financials look weak this morning however the NDX/COMPQ is bucking the trend is higher. I suspect the markets may get a lift this afternoon on the heels of the strong NAZ.