THE CHOPFEST

Quite a close to those who were watching the chopfest between 9.30 and 3.45 EST- low and behold 15 minutes before the close the futures took off to the North and accelerated higher - about 12 points and another few points after the close- something strange happening and I refuse to speculate.

SPX +12, NAZ +22.5 and DJIA +97.

Strongest sectors- trannies, homies, metals, materials, retail and ags while semis, junk, telecom and tech lagged.

SPX - 406 GREEN;

NDX- 82 GREEN;

VIX - down 8.7% at 28.92;

Market in over bought territory with VIX about 7% under the SMA 10- and RSI (2) levels as follows:

ES -85;

NQ-92;

YM -82;

TF 86;

Finally dove in and bought the SSO at/near the 25.6 level and sold a bit higher but before the big ramp up-

Also sold some other SSO I had accumuated - just don't like to see these ramps without taking some advantage.

Commodities continuing to work as the dollar dipping to the 79.35 area helps prices move higher- more dollars to buy the same amount of product-

Gold +$22;

Silver +.50;

Crude +$1.4;

Bonds rebounded higher today and I suspect a nice trade is setting up in the TBT- perhaps early next week.