MORE BITS

Markets were uninspiring in light of the move down in crude and the SPX closed under the 1300 level yet again after chopping around most of the day.





The NAZ/NDX/RUT lagged after moving higher in the morning and the DJIA led- still watching GS which is lagging most of the other financials.





Oil closed at/near $114 while silver was drilled 10% at the $12.75 level;





Despite the move up in the DJIA/SPX market internals were flat;





DJIA winners included PG C AXP WMT T BAC HD -losers- CVX GM BA IBM XOM MSFT AA INTC;

Bill Gross - who is always worth listening to had this on CNBC- believes in the dollar rally but not a "long term" believer- FNM /FRE can not support a housing market with rates at 7%- says the Treasury needs to be aggressive with FNM/FRE and may have to provide them with $15B per in new equity to cover losses-pretty pretty depressing;

Volume has been very light of late and next week it probably gets even worse so there may be some choppy action-

TIDBITS

A few observations,- the financials are generally higher with the exception of GS which is down again over $3- even after the recent crushing- and downgrades- usually it bounced back- but now not so much.

Strong sectors- homies, retail, telecom, banks, defense and drugs while ags, metals, oils, gaming and real estate the laggards.

Market internals heading lower since the early morning push- and probably giving hints that we close lower from these levels.

The XLE- as oil continues to go lower the etf seems to have bottomed when oil was much higher on August 5- not sure its meaningful but it is interesting.

Seems like 1300 on SPX remains big resistance and 1315 area above that- but if Oil goes to double digits next week - that will all change- but still looking for the retrace to the 1250 area - maybe next week.

MORNING MOVES

Markets moving on up again and it seems that as long as oil tanks markets go higher. The DJIA +60, NAZ +9 and SPX +5.

Strongest sectors include solar, homies, banks, brokers, retail and telecom while metals, ags, oils and shipping lag.

NYSE- 500 net winners;

NAZ- 450 net winners;

NDX- 50 GREEN;

OEX- 75 GREEN;

IBD- 45 GREEN;

VIX- flattish near 20.25;

Up volume almost 3X the down;

EURO 1.47;

GOLD- $795;

CRUDE- $112.5;

The 1300 number on the SPX looks to be continue resistance and if/when we get through - the next level is the recent high at /near 1313- also note the SMA 50 in the rear view window at 1288.

Today the RUT is again the strongest major index while the NAZ/NDX is the weakest as I type. Michigan index near the target at 61.7.

THE MIDDLE CLOSE

Markets closed the day in the middle of the range as they seemed to trade inversely to crude almost tick for tick during the pit trading session-

The DJIA closed +86, NAZ +25 and SPX +7.

Also note the rejection of the SPX right at the 1300 level- despite the lower crude- and that appears to be an important level to watch.

Strong sectors- gaming, homies, banks, shipping and financials while metals, energy, utils and steel.

NYSE- 800 net winners;

NAZ- 560 net winners;

VIX- down 5% at/near 20.45;

Very light volume yet again with up about 2X the down;

Financials were yoyoing most of the day with a lack luster performance from GS- and strong action from CME ICE NDAQ NYX BAC JPM MTB USB WB WFC-

Still looking for lower prices in the short term and a test of the 1255 level on the SPX- and still out performing action in the NDX/NAZ/RUT - SPX the big under performer today - probably due to the down trending energy group.

THE FLAG

Markets moving higher as oil is down over $2 - and a nice bull flag pattern over the past 90 minutes may signal a nice afternoon move up if oil doesn't move up first.

Sector strength- gaming, homies, banks, retail, shipping, brokers and trannies while energy, metals, utils and ags lag.

NYSE- 890 net winners;

NAZ- 780 net winners;

NDX- 80 GREEN;

OEX- 70 GREEN;

VIX- down about 5% at 20.5;

SPX up at 1295 and the next stop before reversing probably the 1300 level and keep the 1313 recent high on the radar- and of course keep the NDX/RUT on the screens as they are out performing the major indexes again.

THE OPEN

Markets are trading mixed near the open but they seem to be moving inversely with oil- DJIA -12, NAZ +4 and SPX -3.

Strong sectors include homies, banks, shipping, financials, trannies and real estate while energy, utils, telecom, metals and semis lag.

NYSE/NAZ flat inernals;

NDX- 63 GREEN;

OEX- 40 GREEN;

DJIA -12 GREEN led by GM BAC JPM C HD AIG BA MCD- laggards- AA T VZ XOM DD MSFT CVX and WMT;

VIX- unchanged near 21.6;

Up and down volume about equal;

Markets feel like they want to move higher led by financials with GS getting out of its recent funk and all the exchanged moving higher- still looking for an eventual retrace back to the 1255 SPX area but probably not today. Also note the recent out performance of the NAZ/TECH and RUT.

THE DUMB DJIA

The bell rings and the markets close down 109 on the DJIA down 2 on the NAZ and -4 on the SPX- as more analysts declare the financial stocks to be in worse shape than most realize- my guess- yes - they are correct and correct they are going lower;

Strong sectors- metals, oils, shipping, ags and utils while banks, gaming, brokers, retail and real estate lagged.

NYSE- 430 net losers;

NAZ- 220 net gainers;

NDX- 40 GREEN;

OEX- 30 GREEN;

VIX- about flat at 21.5 and still nearer the lows then the highs;

Light volume yet again with 1.5x to the downside;

Still looking for lower prices as the charts look to this fish to be much nearer the highs than the lows in the short term- and a 50% retracement to the 1255 area should not shock anyone -well maybe someone.

THE BOUNCE

Market coming out of its funk right now led by the NAZ/NDX/RUT as oil is still higher by 3.3% and the dollar is lower- so anyone's guess as to what is next.

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

NYSE- 610 net losers;

NAZ- flat internals;

NDX- 35 GREEN;

OEX- 35 GREEN;

VIX- flat at 21.25;

Down volume still 1.5X the up;

OK- will go out on a limb- market may go higher from hear but I am looking for lower prices before the recent on SPX 1313 gets taken out- so shorting some here on a longer term basis with a stop at the recent highs-

OPENING CRUSH

Looks like all the bad news in financial stocks isn't quite priced in just yet. They are again straight down led by C WB BAC JPM GS LEH LM MS RJF and all the exchanges- and the RUT/NDX green or flattish while the DJIA/SPX way down.

NYSE- 670 net losers;

NAZ- flat internals;

NDX- 40 GREEN;

OEX- 33 GREEN;

IBD- 40 GREEN

DJIA 7 GREEN led by MRK HPQ IBM MSFT XOM AA 23 down- with the worst being BAC CAT AIG AXP HD C DD JPM;

VIX- higher by 2.7% at/near 21.75;

Down volume 2.5X the up;

Crude about $.50 higher but that will surely change at 10:35 EST- as the inventory numbers appear- Natty gas - crushed again by 2.4%;

Gold higher by $10 to $825;

This early day sell off may get bought before the day is over but I doubt we get back to break even-downside targets on the SPX - probably in the 1250/1260 area and after that - hopefully no lower than 1200- but that is a ways off.

Note the Quant on the SOX;

THE CLOSE

Markets closed off their worst levels with the DJIA -137, NAZ -9 and SPX -15 and below the SMA 50 again.

Strongest sectors include metals, ags, semis, defense and biotech while financials, real estate, reits and homies lagged.

NYSE- 1,000 net losers;

NAZ- 450 net losers;

NDX- 35 GREEN;

OEX- 25 GREEN;

IBD- 30 GREEN;

VIX higher by 5.5% at 21.25 and a hair under its SMA 10;

Down volume 8/3 the up with very light volume overall;

GOLD- $822;

CRUDE- $113+;

Financials the story of the day as JPM/GS both downgraded hard by the heavy weight analysts- and the SMA 50 on the SPX also lost during the late day sell off.

RSI (2) levels not quite at buy levels as SPX -42, DJIA -40, RUT 65, NAZ -71 and NDX 90;

GOLDIE

GS making news today as top sell siders decide the stocks is over priced and estimates need to come down. And of course CNBC geniuses telling us that it is no longer teflon since it is way down today- $10+

Breaking news to CNBC - GS was much lower in January and at the July 15 so called financial bottom- $140 area in January and $152 or so in July- so $168 today not so horrible.

Support probably at near $165 - the FIB 61.8 retracement- and don't be surprised if tomorrow someone tells us how over done today is.

SOME STUFF

Markets for now led around by the nose by crude and the dollar - some interesting stuff from BESPOKE as they detail the winners and losers since peak oil on July 3 - Barry with the pretty pretty bullish long term case for oil- Cramer hedging on his bullish/bearish case for financials- VIX + on the $$$$- and MSFT helping the NAZ/NDX to out performance today with a 6 week high.

THE OPEN

Markets open lower led down by the financials as the BKX is down almost 3% and the XBD is down 2.5%- GS down graded again - this time Whitney at Oppenheimer- and the stocks is off $6+;

Strong sectors- metals, ags and oils while trannies, real estate, reits, shipping and insurance lag in addition to the aforementioned financials.

NYSE- 600 net losers;

NAZ- 600 net losers;

NDX- 40 GREEN;

OEX- 25 GREEN;

IBD- 35 GREEN;

VIX- higher by .5% at 20.66 and over sold;

Down volume a bit ahead of up;

TRIN- .75;

GOLD- $825;

CRUDE $114;

EURO- 1.491;

Markets are short term over bought and it will be interesting to see when/if the bulls show up- the SPX still over the SMA 50 which is at 1295- so a little cushion on the downside yet. Also note the relative strength from the NAZ/NDX while the RUT lags (small).

THE CLOSE

Markets sold off in the PM as oil upticked and the $$$$ downticked- and if you can predict the moves in the $$$$ you can call the move in equities as the two are linked for now.

Note also the big sell off in GS which went from +7 to flat on a sell call (estimate reductions) from the nice folks at Ladenburg Thalmann-

XLE finished the day flat while CRUDE closes at $114.5 and gold - about $830- and note the strength in the RUT which finished with a gain of more than 2.25%- I guess domestic business vs. overseas and a lower euro.

Strong sectors include retail, gaming, internets, banks, reits, telecom and homies while metals, ags, steel, emerging markets and oil service lagged.

Market internals closed will with 1,900 net winners between the NYSE/NAZ;

RSI (2) levels a bit stretched at/near 80 on most major indexes with the RUT/NDZ at /near 90;

Seems to be for now a go with the $$$$ trade-

THE RARE MOMENT

Jimmy Cramer just live on TV telling how jokers call him a serial bottom caller and he called the bottom on July 15- well lets go to the videotape- well not xactly vido but archives from realmoney.com -July 16 hat tip to the options fellow:

Can the financials hold on? I think that's too hard, of course. I do believe that they just need to go up for a couple of days so the companies have the ability to raise cash, that's the real issue.

Many of the banks that are rallying need cash. They should be canvassing private equity to find buyers to see if someone thinks the move is for real. Some should be issuing stock right here.
Still others should use the strength to make calls to save themselves and get buyers for themselves.

This is one of those moments where the shorts are on the run. That's when these companies need to play some defense and get some buyers in.

If they don't, it will be one more lost opportunity, because with Wells Fargo (WFC) you just saw the best quarter you are going to see from these banks.

One other thought for those who are short: Bank of America (BAC) will declare its dividend, and that will cause more short panicking, because it is really big.

The SEC's rules plus the short squeezes are an opportunity to recapitalize right now. The banks should take it.

Random musings: So everyone thinks the oil stocks and oil is over? I say we have seen this movie before, and the stocks have come down enough to be buys. ... I still have trouble buying tech here and just don't feel certain about any but a handful of them.

Hard to believe that he talks about nailing the call- well I guess its all in the eye of the beholder.

NOON MOVE

Markets are moving on up on the drop in commodities and rise in the dollar and I have gotten long UWM /UYG- and looking for higher prices- check the action in the brokers/banks which are now getting a bid -

Retail, gaming, internets,homies, banks and brokers leading while oils, metals commodities lagging;

NYSE/NAZ - about 1800 net winners;

NDX-OEX- 70 GREEN on each;

IBD- 75 green as oils/energy are moving off the list;

VIX- under 20 and about 8% under the SMA 10;

SPX cleared the SMA 50 and now about 10 points above- so we now have some support at 1295 for buying pullbacks- and does the SPX look like its in a little mini uptrend?

OPENING RANGE

Markets are trading mixed with the RUT/NAZ higher and DJIA /SPX flat to lower.

Strongest sectors include internets, gaming, retail, homies and shippers while ags, metals, steel, utils and real estate lag.

NYSE- flat internals;

NAZ- 200 net green;

NDX- 55 GREEN;

OEX- 40 GREEN;

IBD- 60 GREEN - leaders include AFAM QSII MPWR GTLS EQPW GHM CMED PVA LMIA MA;

VIX- down .5% at 20.57- and about 5% under the SMA 10'

Up volume a hair better than down;

Looking at the screens- financials a bit dissappointing with GS C WFC LM RJF barely green and most red including LEH MER MS BAC JPM MTB USB WB ICE NDAQ NYX;

Markets have had a big run and resistance remains over head at SPX 1300 - also SMA 50 at 1295 and the SMA 200 at/near 1375- so quite a ways to go to hit the big 200.