THE CLOSE

Markets closed near the highs with the DJIA + 410 NAZ +55 and SPX +45.

Stong sectors- oils, metals, ags, shipping and homies while gaming, banks, real estate and retail lagged.

NYSE- 2000 net winners;

NAZ- 1250 net winners;

VIX- down 20% at/near 55;

Very light volume one fly in the ointment with Up vol beating down about 6/1;

WINNERS- OXY CVX SLB CNQ BHP NOV S AES EP HAL STLD JNPR XOM MRK DIS;

LOSERS- WYN SNDK RIMM SHLD XRAY LAMR MRVL YHOO MA TGT RF;

RSI (2) levels on major indexes 75 to 80;

Iowa markets not giving McCain much of a chance- 13%;

Cramer in the NYTIMES;

Infectious Greed on the new bulls- Grantham, Kass, Ritholtz, Hussman and Toddo;

So how long before all those folks who sold/redeemed over the last few weeks decide to get back in- probably soon.

Credit markets starting to unfreeze - not much of a shock-

Not anxsious to short - think this rally has further to go - probably back to the SPX 1040 level.