THE CLOSE

Not a bad day for the markets as the DJIA temporarily went green and the SPX/NAZ closed in the green.

NYSE- 275 net green;

NAZ- 150 net red;

NDX 60 GREEN;

OEX 55 GREEN;

VIX- FLAT at 47;

Up volume 2x the down;

GOLD about $900;

Market opens low on the heels of lousy world wide markets and quickly shakes it off and heads higher and closes the gap- not looking for break outs or break downs here as we appear to be in this range between 800 and 850 on the SPX.

And check the RSI (2) levels on the SPX - in the middle at/near 50.

GE awful as it sunk under $12 and is lining up as a candidate to be dumped from the DJIA along with C AA GM AXP and BAC.

GOLDEN DAY

Half way through the day and it looks like the bulls have yanked control of the markets. DJIA -100, SPX 3 and NAZ +6.

Strong sectors- metals, oils, semis, real estate and tech while bonds, utils, retail and drugs lag.

NYSE- 490 net losers;

NAZ- 390 net losers;

VIX- 48.45 and higher by 2.5%;

GOLD the clear winner on the day and sold some of my DGP - and looking to buy back before too long;

Staying long and buying dips and selling rips for now- LONG DIG UWM -

Some fun links today:

The Quant on stops;

BIG on the VIX;

IRA rules;

Best Financial BLOGS;

Shopping in 2009;

Influential Liberals;

THE OPEN

Markets opened opened lower but are well off their worst levels as traders decided to buy the big gap down.

Strong sectors- metals, semis and oils while defense, shipping, banks and retail lag.

NYSE- 1450 net losers;

NAZ- 850 net losers;

NDX- 25 GREEN;

OEX- 18 GREEN;

VIX- higher by 5% at 49.65;

Down volume 3X the up;

Gold getting some upside jig at about $880 - and its happening despite the higher dollar- times seem to be changing;

FWIW - seems like everytime the markets look like they will cascade to the old lows - in come the buyers - happened yesterday and again this morning- eventually we probably get there but for now it looks like buy the dip - and small caps seem to be making the best move UWM.

MIDDAY FLIP

Markets have almost flipped to green after being way down this morning- the "weak markets close at the lows" not going to work today.

One fly in the ointment - the internals as the markets turn flattish both the NYSE AND THE NAZ with very weak internals -about 1000 net loser on each exchange.

NDX - 20 GREEN;

OEX- 35 GREEN;

VIX- flat at 46.85;

Down volume about 2X the up;

Not much of an explanation for the turn around but it is what it is- market probably closes with the DJIA +100.

THE OPEN

Markets open lower as housing numbers come in poorly and MSFT spits the bit- AAPL beats and the stock is higher by 7% as I type.

SPX -17, DJIA -150 and NAZ 41.

Strongest sectors include metals, utils, bonds, drugs and ags while financials, internets, shipping and gaming lag.

NYSE- 1800 net losers;

NAZ- 1300 net losers;

NDX- 5 GREEN;

OEX 15 GREEN;

VIX- higher by 7.5% at 50;

Down volume about 5X the up;

Gold up a bit - Crude down $2;

Not looking to buy this dip as I suspect we may be back at the "markets close at/near the lows on weak days" scenario. And Erin talking about pent up demand for housing- someone should mention to her how many homes may come on the markets once prices stabilize!!!!

THE LEADER

Futures indicating a lower open- but its early- anyhow some good links - and did anyone see Dick Armey this morning telling us how the economy is really not that bad- maybe he needs to sit down with Roubini.

The Approval of Universal Health Care;

Let Him Fail- great idea;

Roubini 3.6 Trillion;

Dr. Kellner on housing;

THE CLOSE

Markets closed near the highs as financials and banks led the way- down 20% yesterday and up 20% today- and no that is a losing trade.

NYSE- 1800 net winners;

NAZ- 1400 net winners;

NDX- 85 GREEN;

OEX- 80 GREEN;

VIX- down 18% at/near 46.4- and just like that a hair under the SMA 10;

SPX -RSI (2) - 60 ;

Markets closed the early gap higher and went under DJIA 8K and went straight up from those levels- of course the next areas of resistance - SPX 840 at the 50% retrace between the 741 low and the 945 high.

Also, it was turn around Tuesday - only think it happened on a Wednesday.

AFTERNOON TRADE

Markets are bouncing around and trying to call the close or the trend for the next few hours probably not a great idea.

Market internals started the day very firm but have since weakened.

The RUT leading for now - but very volatile.

Banks and Financials trading way higher after the big selloff yesterday- just wondering how many are chomping at the bit waiting to short this squeeze higher.

VIX still down about 10% and our friend The Quant with some stats.

Oil still moving on up and DIG looking good on the long side.

Sector strength found in banks, oils, brokers, shipping, biotech and real estate while homies, semis, utils and bonds lag.

Obama making some news with new rules on lobbying, FOI and a wage freeze for those in the White House earning in excess of $100k-

THE OPEN

Markets open higher but not sure that a lot of traders trust the upward thrust- its led by the banks and financials which have been thrashed the last few trading days.

Strongest sectors include financials, shipping, brokers, gaming and oils while homies, bonds and drugs lag.

NYSE- 1350 net winners;

NAZ- 900 net winners;

NDX- 80 GREEN;

OEX- 80 GREEN;

VIX- down a quick 10% at 50.75;

Up volume 4X the down;

TRIN .75;

I will call this a buy the dip day for now- but if 8k on the DJIA or 815 on the SPX gets taken out - I will be done for the day- DIG another way to play as oils looks strong.

Geithner about to be grilled - remember he has a tough act to follow in Paulson- everyone wants him confirmed but they also want some blood for the tax problems.

SOME LINKS

Its early - but the futures are pointing to a higher opening-gold up, crude up, EURO up and some good links:

VIX +MORE with some good analysis;

Dr. Brett on 6 keys to identifying a trend day;

GM on the Brink;

TRADER MIKE back at work;

Suspending Mark to Market;

BESPOKE on the few and the proud;

THE PRE CLOSE

OK - that is enough for today - as the DJIA is down 300+, NAZ -75 and SPX -40. Adios to DJIA 8k - which was the place where the short lived rally started last week.

Turnaround Tuesday - maybe next week-

NYSE- 2400 net losers;

NAZ- 1925 net losers;

VIX- higher by 22% and trading at 56.25;

The clear culprits today - the financials with C trading down 18% at $2.88; BAC -27% at $5.25; JPM -19% at $18.5; WFC -23% at 14.4 and GS 17.5% at $60.

So much for the financials as the BKX index trades down to 25.76 or -18% on the day.

Waiting for the tomorrow but a nice rally probably around the corner- although everyone's best friend now with this.

Mr. President- better days hopefully not far off- as I have been pinged more than a few times today about how the markets haven't done well since Obama was elected.

MIDDAY DRIP

A new time but seems like the same old market as the financials continue to head straight down with the BKX at the new low of 27.45 lower by 13% on the day.

NYSE- 2100 net losers;

NAZ- 1630 net losers;

NDX- 6 GREEN;

OEX 18 GREEN;

VIX- down 13% at 52.1;

Down volume 7X the up;

Hopefully Obama manages to a little more for the investor than the last guy.

Probably not much lower or higher the rest of the day as the damage seems done - and the market is even more over sold.

Tomorrow - possibly Turnaround Tuesday as we get near the old support at DJIA 8K .

THE OPEN

Another awful day in the markets as the DJIA starts -150, NAZ -38 and SPX 21.

Strongest sectors- metals, telecom, utils and drugs while banks, gaming, shipping and real estate lag.

NYSE- 2000 net losers;

NAZ- 1400 net losers;

NDX- 8 GREEN;

OEX- 12 GREEN;

VIX- higher by 13% at/near 52.25;

Gold trading near $850;

$$$$ moving up while the EURO dips under 130;

The financials are getting torched after the ugly European news yesterday- JPM -13%; BAC -16%; WFC -15%; GS -9% C -12% and GE down 6%;

Other stocks trading ugly include - BK RF MS USB S AXP MICC LOGI FLEX FWLT VMED SHLD EXPE WYNN;

Markets still way over sold with RSI (2) levels near 10 on the SPX- VIX about 15% above the SMA 10- I guess happiest guy around is George W. Bush- market can no longer go down on his watch.

MORE ROUNDTABLE

Despite the traders day off - the futures are/were open most of the day and it wasn't pretty as SPX futures are currentrly trading about 13 points below fair value- so tomorrow will probably not get off to a pretty start.

Barrons with more from the roundtable and Abby off to a rip roaring start to 2009- as she picked BAC on January 2 at a price of $14.33- we all know what has happened since- What does she say about this shrewd pick:

"Bank of America common equity is interesting, as well, from a valuation perspective. It yields in excess of 15% because investors are nervous about it. The stock is down 65%. We all know about the banking sector's problems, and credit-cycle issues will take a while to play out. In Bank of America's case, there are three phases to the credit cycle. The first was problems related to mortgages and home equity. The bank had 43% of its loans in the housing sector. The next phase of concern will relate to construction and commercial lending, and the third phase to losses related to consumer loan books, such as credit cards. The bank has material consumer exposure and delinquencies are increasing, but it becomes a question of what is priced in."

This is a controversial stock, and it is priced as one. [Note: According to government and company announcements Friday morning, Bank of America, which already has received $25 billion in TARP money, will get additional funding and a loss-sharing agreement on impaired assets because of problems at Merrill Lynch, which are worse than had been expected when BofA struck a deal last fall to acquire Merrill. As a result, BofA's capital position has been significantly weakened. Bank of America also is cutting its dividend to a penny a share. According to Abby, Goldman Sachs analysts say BofA may have other capital options available as it seeks to reduce leverage. It could reduce stakes it holds in other financial institutions, such as CCB, BlackRock or Itau. Pro forma tangible book value is about $10. Extensive government involvement likely will mean current shareholders aren't a top priority.]

It will be interesting to see if Abby is back with the roundtable next year- I suspect there may be a major overhaul.

Some links:

Market Sci's most popular posts of 2008;

Seeking Alpha on a bio breakout;

BESPOKE on % of stocks above the SMA 50;

SECTOR returns YTD;