GONE FISHING - BACK SOON

THE CLOSE

Markets closed at the lows and that probably should have been predicted once yesterdays lows were taken out. The SPX -12, NAZ -20 and the DJIA -107.

Sector winners- metals, drugs and junk while retail, energy, brokers and homies lagged.

SPX 90 GREEN;

NDX- 18 GREEN;

VIX - higher by 6% at 32.7 and a full 10% above the SMA 10- hasn't happened in a while;

RSI (2) levels:

SPX 5

NDX 2

RUT 4

DJIA 5

So going home long some QLD and looking to hold for an exit when the RSI is over bought at/near 70 area- hopefully this market doesn't just go straight down - not that likely.

Also, tried some DIG today but was stopped out of that trade pretty early.

Some pretty good ES monthly support at the Pivot near 903.-

MORNING LOOK

Markets are chopping around this AM and don't see much that is going to change any time soon. The SPX +2.5, NAZ +11 and DJIA +12.

Strong sectors- metals, drugs, trannies and real estate while retail, banks, telecom and internets lag.

NYSE- 600 net green;

NAZ- 400 net green;

NDX - 64 GREEN;

SPX- 277 up and 215 down;

VIX- unchanged at 31;

Quickly flipped my QLD this morning and looking to get back on a dip - also bought some DIG as buyers showing up this afternoon would not be surprising- it it doesn't go down it probably goes up as lots of folks still expecting a big down draft.

MORNING MOVES

Futures are trading higher this morning on the heels of yesterday's sell off and now some over sold conditions- and yes it looks like QLD long from the close is looking ok and may take it off soon enough.

Not sure I want to get all beared up looking at the chart above - but to each their own.

And BBY disappoints with its retail news and the comps look like the biggest problem.

ES +3.25;

NQ +6;

YM +25;

Also back to the bullish indications for equities - dollar down, gold/crude/commodities higher and nat gas another 3% higher.

Other stuff this morning:

In Iran - one indication of a counting problem;

Kellner looking for more dollar weakness;

Value Line less- bullish - wonder where they were at SPX 1575?

BESPOKE on Growth vs. Value;

DR. BRETT on 10 day high followed by 10 day low;

Overbought and Oversold ETF's;

And who isn't tired of hearing from the other BRETT;

POST CLOSE LINKS

Some links that I found of interest:

Jeff Saut and not much interest in shorting stocks;

BESPOKE on the Barron's head scratching;

Tyler on the steady volume;

Kass and his model portfolio;

Twitter - doing some good work- I think some problems down the road- and probably not going to end all that well -;

THE CLOSE

Markets closed a bit off the worst levels but gapped down at the open - went lower during the first hour and flat lined the rest of the day.

The SPX closed -22, NAZ -42 and the DJIA -187.

Strongest sectors- junk, semis, internets, telecom, brokers and retail while real estate, energy, trannies, metals and ags lagged.

NYSE- 2100 net losers;

NAZ- 1500 net losers;

NDX- 4 GREEN;

SPX- 16 GREEN;

VIX- higher by 9.5% at 30.8;

TRIN- 2.47- with almost all the volume to the downside- and light volume overall at 1.16B shares traded- just like on up days.

RSI (2) levels:

SPX 10

NAZ 8

NDX 4

RUT 7

Clearly some oversold conditions and I dipped in and bought some QLD - for a quick flip - hopefully for turnaround Tuesday tomorrow-

Also wanted to buy some DIG but it didn't get to my lower target- so on lower prices I plan on buying it.

Lots of talk on stocktwits.com of this being the start of some bigger move lower - not sure but my hunch is lots of folks missed out on much of the move higher and will look to buy the dips- in order to catch up to the other folks who have been long and strong since SPX 1575.

LEVELS

Markets still way down but off their worst levels- SPX -23, NAZ -48 and DJIA 188.

Best sectors- still red- junk, telecom, semis, brokers and retail while energy, emerging markets, real estate and trannies act the worst.

Market internals - awful with 1 green on NDX and 16 green on SPX.

Key levels-

SPX 50 SMA 891;

SPX 20 EMA 924;

SPX 200 SMA 910;

FIB retrace area 890 and 850 on SPX;

WS2 on ES near 911;

WS2 on NQ near 1440;

THE OPEN

An ugly day in the markets if you are net long with the SPX -17, NAZ 36 and DJIA 157;

Strongest sectors- telecom, banks, semis and drugs while trannies, emerging markets, real estate and ags lag.

NYSE- 2200 net losers;

NAZ- 1550 net losers;

NDX- 4 GREEN;

SPX- 17 GREEN;

VIX- higher by 5.5% at 29.7;

Gold down $3 and crude down $1.2- natty gas the bullish story as it is higher by about 5%.

RSI (2) levels near 10 on most major indexes with NDX the worst at/near 4;

Doesn't look like we get much of a bounce today as the internals are just horrible and bounces are being sold quickly-

Tomorrow probably a different story as it is Turnaround Tuesday- and with the anticipated over sold conditions - probably time for a bounce - so day trades on bounces to the short side and near the close I will buy some for a bounce tomorrow.

THE DROP

Futures getting pummeled this morning as the dollar is up about 1% at 81.335 - gold down $6 and the oil down a at $71.28.

ES -10.5;

NQ-13;

YM -86;

Manhattan real estate getting lots of publicity this morning;

Stimulus spending again on the front burner;

Four Key indicators;

THE ELECTIONS

Futures look to be opening lower with ES -3, NQ -6 and YM -36.

The dollar is moving up and is currently at 80.8 higher by 1.22%.

Left a bit early on Friday and didn't see the close but I did see the rip on the reuters news at 14.44- that boosted the markets- "Mousavi wins Iranian election with 65%, according to close aide"- Well not really or maybe really but not gonna happen-

The markets still generally overbought with RSI (2) levels as follows:

SPX 82

DJIA 87

RUT 63

NAZ 56

NDX 25

Weekend stuff:





Barrons- their gurus- what they think now-





Hickey - bullish on GDX GLD AEM AUY MSFT and INTC;





Gabelli- bullish on LM ORLY VIA/B and USM;





Zulauf- EEM EWH EWS XME OIH XLE (GLD when it gets down to $850);





Schaefer- Long MV and Short PCL;





Black- BWP CALM;





Cohen- HESS and Lenovo Group (Hong Kong);





Gross- C and BCS bonds;





MacAllaster- BAC PL;





Faber- longs a bunch of stocks from Singapore and Thailand and EWJ- and short US Treas;





Witmer- Long MSFT;





I am long gold and MSFT and the rest no idea;





From the blogosphere:





FARI with some bearish stuff;





A random walk down Madison Ave.- pretty ugly;





But Houses most affordable since the 60's;





VIX+MORE- with his FIBS;





DR. BRETT and how all boats not being lifted;





Jason on some specs betting on a higher VIX;





TICKERSENSE- on the earnings bottom;





BESPOKE- on the stocks over the SMA 50;