THE LEGG UP

Markets contine to trade higher but way off their best levels. Strongs sectors found here- MOO, insurance, reits, emerging markets, telecom, banks, gaming and drugs- weak links- metals, airlines, homies, retail and the NDX;

The saying that markets that are strong all day tend to close at/near their higher may be a loser today as it looks like stocks want to roll over.

Market internals holding up pretty well while the crummy action in the brokers GS LEH BSC leads me to believe we will close near the lows.

Interesting note on Briefing.com about Bill Miller's letter to shareholders- the key takeaways:

"The valuation disparity between Treasuries and stocks is as great today in favor of stocks as it was in favor of Treasuries 20 years ago. Just prior to the Crash of 1987, stocks yielded about 2% (same as today), but traded at over 20x earnings. The 10-year Treasury yielded over 10%, vs. 3.6% today. The two-year Treasury now has a lower yield than the S&P 500, and that is before share repurchases, meaning you can get a greater yield in an index fund than you can in the two-year, and a free long-term call option on growth."

"Even more compelling are financials, where you can get dividend yields about double that of Treasuries, which only adds to their allure, with them trading at price-to-book value ratios last seen at the last big bottom in financials."

More "stocks are cheap" chatter.