BACK ON MONDAY

GONE FISHING

THE BULLS

So after taking a short rest the last few days the bull decided to make an appearance in the final 60 minutes of trading. Even the NAZ which was down big all day managed to climb into the green into the close.

Strongest sectors- real estate, homies, banks, brokers and metals while tech and semis dragged.

NYSE- 1270 net green;

NAZ- 700 net green;

NDX- 45 GREEN;

OEX -75 GREEN;

VIX- down 4% at 36.25;

TRIN- .93 with up volume 2.5x the down and light overall at 1.4B shs;

Bull markets usually close at their highs and rally into the last hour and are led by financials and tech- well both fins and tech rallied into the last hour and this market is starting to look like a classic bull.

GS opened the day near $115 and closed well over $120 so the numbers were clearly not that bad- JPM up next and we will see the reaction.

RSI (2) levels - sitting near the middle on major indexes near 65 while I continue to feel that the VIX has become more or less useless as an overbought/sold indicator- it doesn't move much.

BRUTAL TO WATCH

Markets drifting around much of the day and where its ends I have no clue- I guess we should look at this as consolidation and bullish.

Strong sectors- real estate, homies, metals and utils while tech, shipping and retail lags.

NYSE- 485 net green;

NAZ- 275 net green;

NDX - 35 GREEN

OEX- 50 GREEN;

VIX- flat;

Gold and crude near the unchanged line;

Horrible day to watch as the markets drift with no real direction- internals are ok on the NYSE/NAZ but weak on the NDX/OEX- looking for another bounce to the pivot on the TF/ES and then probably dumping my IYF longs.

THE OPEN

Markets are mixed but well off their worst levels with strength in fins and weakness in tech and semis. SPX +2 and NAZ -7.

Strongest sectors- homies, real estate, gaming and trannies while tech, brokers and energy lags.

NYSE- 700 net green;

NAZ- 450 net green;

NDX- 50 GREEN;

OEX- 50 GREEN;

VIX- down 1% at 37.25;

TRIN- 1.58 with up and down volume about even;

Crude trading a bit higher while gold is about unchanged.

Feels like the dip buyers are back and wanting to take the markets higher- watching crude as investors await the 10:30 inventory numbers.

Levels of support are 840 on SPX with resistance near the 855 level- near yesterdays highs.

PRE MARKETS

Futures are trading this morning as the trend from yesterday and the unwelcome news from INTC and GS continues to weigh on the markets.

ES -5;

NQ -13

YM -32

Langone and Marcus from HD on CNBC criticizing everything - including the quality of cars at GM - just wonder when the last time was that they were in any Home Depot and the consumer satisfaction in those stores- try to find a helpful person or an open register- comical- LOW much better in all respects. And saying that the government and shareholders should let Directors do their job to control the CEO's etc- more comedy - like the boards are not conflicted - witness just about any of them.

Maybe time to get long the energy patch;

Are the FINS done?;

S & P and their lousy take on GS and did they TOPTICK the markets;

The race to 1 Million;

The latest CDS charts;

CLOSING NUMBERS

Markets closed down and near the worst levels of the day - SPX -17 and NAZ -27.5.

Strong areas- oil service, shipping, semis and ags while real estate, fins, homies and small caps lagged.

NYSE- 1200 net losers;

NAZ- 950 net losers;

NDX- 23 GREEN;

OEX- 15 GREEN;

VIX- flat at 37.7;

Ugly financials as GS MS both gave up much of their recent gains- GS down about $15 and 11% at $115 and MS down $3 and 11.45%;

SPX held the 840 line and the next areas of support are at 825 and 815-

INTC - misses barely on the top line and beats on the bottom by a few cents and is trading down about 60 cents as I type.

I am not expecting a big pullback and a move to 815 would probably be welcome as lots of under invested folks would love to get in at lower prices. SRS on the radar as that was one area that GS continues to say is weak.

MIDDAY CRUSH

Markets are lower but off their worst levels - SPX -15 at 844 and NAZ at 1625-28.

Strongest sectors- energy, metals and gaming while real estate, banks, fins and homies lag.

NYSE- 1120 net losers;

NAZ- 1020 net losers;

NDX- 25 GREEN;

OEX- 20 GREEN;

VIX - down on the day at 37.5;

TRIN- .75 with down volume ab0ut 1.5x the up;

GS leading the downward move as the shares trade down 9% as I type at 118+ MS also getting crushed down a little more than GS-

I suspect the bulls are lurking and anxious to buy this dip as it has been working for about 6 weeks now- Support for now looks to be around 840 on the SPX - and I am not expecting the markets to close at the lows.

LOWER OPEN

Markets open lower with the SPX down 9 and the NAZ down 14.

Strong sectors include gaming, shipping, semis, energy and metals while retail, ags, real estate and small caps lag.

NYSE- 1040 net losers;

NAZ- 800 net losers;

NDX- 25 GREEN;

OEX- 15 GREEN;

VIX - unchanged near 38;

TRIN- Up volume a bit better than down on both the NYSE and NAZ;

Crude down a tad while gold is down about $7 at $890;

Haines showing some shrewd thought process declaring the decline in the indexes is "phony" cause up volume exceeds down - true but many more stocks down than up - a real fact-

Dip buyers trying but so far no dice on turning the indexes around - its early and a flip before the end of day would not be surprising to anyone.

PRE MARKETS

Markets look to open lower on the heels of some poor economic news that came out at 8:30- specifically retail sales much worse than expected.

ES -8

NQ -6.75

YM-61

And that may be an excuse to take profits after the market has gone pretty much straight up since early March.

Also- lots of downgrades this morning and the SPX is still way stretched at about 9% above the SMA 50- RSI (2) levels also way extended - near 90 on the SPX.

How about these charts for a little over bought action;

WFC need some of those GS profits;

Everyone looking for a pullback - just be careful what you wish for because you may just get it in spades.

CLOSING NUMBERS

Markets closed a bit off the highs after financials surged in the 45 minutes before the close. The SPX closed +2 and the NAZ +1 while the DJIA was -25.

Strong sectors- fins, gaming, metals and shipping while utils, semis, energy and trannies lagged.

NYSE- 525 net winners;

NAZ- flat internals;

NDX- 25 GREEN;

OEX- 45 GREEN;

VIX- up 3.5% at 37.85;

TRIN- .64 with up and down volume about equal;

Gold closed up about $15 and crude down $2.35 as the dollar tanked for the first time in a while;

GS releases earnings early and the stock is dropping on the news earnings of $3.39 unadjusted- oops moving higher now at $130+.

Markets still way over bought and much of the media continues to beat the drum for bear market rally- I have no idea if it is but for now buying into weakness is paying off with winning trades.

Finally - a new HD tv in the trading room and my goodness Maria B - have you heard of WTW- or maybe get a gig with one of those companies and challenge Valarie B or Kirstie Alley- goodness.

MIDDAY MUCK

Markets continue to bend but not break as every time it looks like they are going to head lower the buyers step up.

SPX -5.5 and NAZ -16.

Strong sectors- metals, banks, gaming and brokers while semis, real estate, homies and trannies lag.

NYSE- 750 net red;

NAZ- 820 net red;

NDX- 20 GREEN;

OEX - 30 GREEN;

WINNERS- ESRX YHOO BIDU CEPH FMCN CELG VRTX C AXP BAC GE RF COF GS;

LOSERS- BA XRX HON S TWX EMC WMB UTX LOGI SYMC NVDA MRVL FLEX JAVA;

VIX- up 4% at 38;

TRIN- .48 as up volume still 1.5X the down;

Lots of cross currents still and a rally into the close is probably the way the markets finish today (out on little limb) as for now all the dips in the fins get bought.

Kass seeing a cloudy future;

BESPOKE looking at over bought levels;

VIX +MORE on the VIX;

THE OPEN

Markets are lower but strength to be found in GS BAC JPM AXP GE C COF GOOG - lots of cross currents.

Strongest sectors- metals and drugs while homies, energy, trannies and real estate lag.

NYSE- 1500 net losers;

NAZ- 1000 net losers;

NDX- 15 GREEN;

OEX - 20 GREEN;

VIX- higher by 5.5% at near 38.6;

TRIN- .32 with up volume slightly ahead of down volume despite the DJIA -90 and SPX -8.

Specific financials with nice looking charts this morning as GS MS BAC JPM all green and I suspect they will bring the rest of the market up before too long.

Looking to dip into IYF and MS - as GS leads the way-

ABJ with some comments on CNBC this morning saying how she called the market top in 2000- check this article out - as she tells us how great the US banks were and how it was a great time to buy solid tech stocks. CNBC lets her get away with the nonsense.

ONE MORE STRETCH

Futures are trading lower as I type with the ES -7.25, NQ -7.5 and YM -62. Gold +9 and crude down $1.38.

Check out the IYF (financials ISHARE) which was up more than 11% on Thursday and now has a nice gap to fill.

Its also a bit over bought and stretched to the upside as it has an RSI (2) of 92 and is sitting about 22% north of its SMA 50. Pretty stretched but not nearly as far as it was stretched to the downside at the March 6 low - 32% south of the SMA 50- and an RSI (2) level of 1.

So clearly expecting a pull back from these stretched levels and curious see how the bulls respond as they have buying all the dips of late.

Bear market rally?

GM being told to prepare for bankruptcy;

Trading the odds;

More housing pain;

Audits- eh;