GONE FISHING

THE CALL

Market closes pretty ugly as the Mark up folks couldn't get the mojo into the close- can't blame oil today as it drops over $2.5 and seems to be a break in the lower oil higher stocks trade.

Best sectors - biotech, homies, metals, semis tech and gaming while oils, steel, ags, banks and reits lagged.

NYSE- 700 net losers;

NAZ- 300 net losers;

VIX- 22.5 and higher by 6%;

Light volume with losing doubling gaining;

OK - a winner - a volatile day and bulls and bears both could have made money- but the big news - Cramer has called the bottom- and his reasoning- two nice up days Tuesday and Wednesday- great reasoning although two big down days- Monday and today- so who knows- then again Jimmy gives another reason on his STOP TRADING segment- some smart hedgies in London are buying WM and SOV- break in- Doug Kass says those are old positions- comical- and how many times have investors tried to cherry pick the bottom in financial stocks- MER C etc at double the current quote by big smart investors and how bout that big hedge fund guy who thought he was getting a steal on BSC at/near $100-

And how satisfying to Jim to call the bottom on a day when the DJIA closes down 200+. He probably would have been better off with the buy DJIA 10K and sell DJIA 12K - although those numbers have not been hit since he mentioned them- too funny.

BULLISH

Prediction- another volatile day- well the NQ futures have already climbed 30 points off the lows as biotechs are leading the way higher with the news of the IMCL BMY deal- other leading sectors include metals, semis, drugs, telecom and tech while oils, steel, ags and banks lag.

NYSE- 680 net losers;

NAZ -265 net losers;

NDX- 60 WINNERS;

OEX- 45 WINNERS;

VIX- slightly higher at 21.6;

Up volume creeping up to equal down volume;

Looking to day trade from the long side as I doubt the fund managers are going to let too much of this weeks gains dissappear- so buying UYG SSO QLD on inter day dips.

THE CLOSE

Don't know if that was short covering/window dressing or buying in the energy complex - but they sure were the place to be today- hopefully folks wont be saying the easy trade was oil at $125 for the ramp back to $145- but could be.

Anyhow, markets closed near the highs after giving a few fakeouts- stong sectors were energy, steel, ags, brokers and banks while real estate, internets, retail and biotech lagged.

Market internals were solid on the NYSE at +100 but near flat on the NAZ which lagged all day;

VIX- 21.2 and down about 4%;

Going out on a limb declaring I have no idea about tomorrow's trade- they wont mark em up again but the interesting trade will be energy - maybe some follow through.

MIDDAY RUSH

So just when you thought it was straight up for equities a little problem with crude developes. The DJIA +38, NAZ -14 and SPX +4.

Strong sectors- oils, steels, ags, utils and banks while real estate, homies, gamins and retail lags.

NYSE- flat internals;

NAZ- 300 net losers;

NDX- 20 GREEN;

OEX- 60 GREEN;

VIX- flat at 22;

Up volume a hair better than down;

Financilas started very strong but have since come in with the price of oil moving higher - however, keep in mind its mark up day July 30 so the bulls may try to grab the reigns before the day is over- the oils are ripping higher after terrible performance over the past few weeks and surprisingly techs are struggling with only AAPL RIMM of the big guys in the green.

OPENING PUSH

Markets are trading higher again with the DJIA +160, NAZ +20 and the SPX +16.

Strong sectors are steels, banks, gaming, brokers and semis while metals and emerging markets lag.

NYSE- 1375 net winners;

NAZ- 930 net winners;

NDX- 75 GREEN;

OEX- 90 GREEN;

VIX- 214 lower by 4.5% and getting a bit oversold;

Up volume about 4X down;

Bulls trying to make a move here and the first target is the recent of 1290- and don't forget its month end - so a few games could be played later in the day.

THE CLOSE

The roller coaster continues as stocks closed up with the DJIA gaining 260 the NAZ 54 and the SPX 28.

Interesting how the NDX made its high around 11 AM while the SPX/DJIA just kept chugging along all day as the financials led higher.

Strong sectors- banks, brokers, homies, real estate and reits while oils, metals, ags and drugs lagged.

The key give away tell - the internals never wavered through the early afternoon pull back as there were more than 2500 net winners on the NYSE/NAZ all day.

Lots of chatter about MER and how they are higher today despite the ugly sale - well check the chart- its not like it goes up every day;

Gold/Crude crushed again with the $122 on the latter and $920 on the former;

RSI (2) levels at/near the 70 level as the market oscillates day to day - no short term memory of late;

The way the markets are trading - its pretty dumb to try and speculate what tormorrow may bring- especially in light of the 10:35 EST inventory number - so just day trading the trend for now- and using the internals and the "markets that are strong all day tend to close at/near the highs" as the guide.

THE PARTY

The day is shaping up as a good day for the longs as the DJIA is +128, NAZ +40 and SPX +14.

Strong sectors include steel, homies, banks, retail, gaming and semis while metals, oils, utils and shipping lag.

NYSE- 1300 net winners;

NAZ- 1180 net winners;

NDX- 90 GREEN;

OEX- 85 GREEN;

VIX- down 4% at near 23.25;

Up volume 2X the down;

Crude crushed over $3 at near the 121 level;

Gold also wacked by $10 as the dollar is very strong;

The 1250 level on the SPX looks like the first area of resistance while 1257 is next - bought some QLD and UWM but a little late to the party- although I do think this party will last today.

THE DIVE

Shocking how the markets closed at/near the lows again with the only bounce during the day being Hank Paulson's latest take on the Covered Bond insurance- that helped for about three minutes.

The DJIA closed -240, NAZ -46 and SPX -23;

Strong sectors- steel, oils, metals and shipping while brokers, banks, insurance and homies were the worst.

Market internals pretty crummy at 2800 net losers between NYSE/NAZ.

VIX +6.5% at 24.4 and barely above the SMA 10;

RSI (2) levels - market getting short term oversold with most indexes below 20;

Interesting how all the worst performets from the dive down to 1200 are the worst performers again- GM C MER AIG BAC JPM SIRI UAUA SHLD YHOO AAPL LEH F etc.

Sold all my inverse 2X ETF's today as it was a bit over done and tomorrow may yet be Turnaround Tuesday- anyhow - if not , can always reload on the short side.

SWOONING

Markets continue to trade lower with the NAZ/NDX leading the way down while the Midcaps act best.

Strongest sectors include metals, oils, steel and utils while brokers, banks, internets and homies act worst.

More than 1,000 net losers on both the NAZ/NYSE;

VIX- higher by 5% at 24+;

Down volume now 2X the down;

so far 1245 not holding as we are trading a hair under and if the general rule holds- (markets that are weak all day- blah blah blah) it could get ugly. Maybe the SEC could find a way to just ban selling as a new answer to these ugly markets.

THE OPEN

Markets are generally trading lower with the DJIA -60, NAZ -8 and SPX -1.

Strong sectors include steel, oils, utils and biotech while brokers, banks, homies and internets are lower.

NYSE- flat internals;

NAZ -570 net losers;

NDX- 30 GREEN;

OEX- 45 GREEN;

VIX- flat at 23;

up and down volume about equal;

Crude and gold trading near the flat line;

Not much excitement this morning and the markets feel and directionless for now- area of support on the SPX probably near the 1245 level- 50% retracement.