CHOP AND SLOP

Markets closed the week with a whimper as the SPX finished down 1.4, NA Z-3 and the DJIA -22.

Strongest sectors- gaming, trannies, metals, oil service and bonds while semis, retail, ags, banks and brokers lagged.

NYSE- flat internals;

NAZ- 500 net losers;

NDX- 46 GREEN;

SPX- 225 GREEN;

VIX- up a hair at 24.1 and 7% below the SMA 10.

TRIN- 1.25 with down volume a bit ahead of up.

A major snoozefest today and a market maybe starting to digest recent gains- still way over bought with RSI 2 levels near 85 on most major indexes- down almost 15 from yesterday- wouldn't surprise me to see the futures way up on Monday morning - we will see.

Happy birthday Maria and congrats to Annie for continuing to fight.

MORNING TAKE

Markets have opened flattish with the small caps and the SPX out performing the NAZ/NDX.

Strongest sectors- gaming, metals, oil service, trannies and ags while retail, banks, brokers, semis and internets lag.

NYSE- 200 net green;

NAZ - 100 net red;

NDX- 32 GREEN;

SPX- 215 GREEN;

VIX- flat at 23.5.

TRIN- 1.03 up and down volume about even.

Gold up about $12 at 1010.

Dollar - down a hair at 77 and EURO flat at 1.458.

Not a great deal going on this morning except for the move in gold - and under performance of the NQ futs which usually lead - but if the market doesn't drop soon it will probably get bought again.

Links:

Dr. Brett on aligning your trades with big traders.

Remembering the pre January 20 days.

Whitney on home prices- she kind of missed the rally.

BESPOKE on gold.

MORNING MOVES

Markets are trading near the flat line with strength on the NAZ and less strength in small caps.

Strongest sectors- internets, metals, trannies, oil service and energy while banks, real estate, gaming, biotech and defense lags.

NYSE- 400 net green;

NAZ- 200 net green;

NDX- 68 GREEN;

SPX- 300 GREEN;

VIX- down 3% at 23.5.

TRIN- 1.00 with up volume about 1.5x the down.

Gold flat dollar flat oil slightly higher.

Markets moving up since I started typing - high ticks - the usual- dips get bought immediately.

THE CLOSE

Markets didn't quite make it back to the midday highs but they did recover quite a bit from the BB lows.

SPX +8, NAZ +22 and DJIA +50.

Strongest sectors- gaming, internets, real estate, reits and small caps while metals, junk, oil service and energy lagged.

NYSE- 1300 net green;

NAZ- 1100 net green;

NDX 79 green;

SPX - 375 green;

VIX- down 5% at 24.3;

TRIN - 1.28 up volume 2x the down.

Gold went down after 11 while the dollar went up after 11 so they seem to be back in sync.

Sold most of my SSO today into the late day ramp and expecting some selling the rest of the week - seems like they wanted to get it done today but bulls were saved at the end - thinking it won't happen tomorrow or Friday.

Also thinking a sell off will be more severe than the bulls would like -

MORNING USUAL

Markets continue to move higher despite the over bought conditions - SPX +4, NAZ +12 and DJIA +32.

Strong sectors- nat gas, gaming, internets, retail, silver and reits while junk, banks, brokers and homies lag.

NYSE- 900 net green;

NAZ- 700 net green;

NDX- 67 GREEN;

SPX- 328 GREEN;

VIX- down 2% at 25.17;

TRIN- 1.39 with up volume about 1.5x the down.

Gold higher by $4 at $1001- dollar down about .5% at 77.35 while the EURO is almost 1% against the dollar.

RSI 2 levels above 90 on most major indexes - with the NDX/NAZ the most over bought- nat gas picking up the steam as the big sell down over the last few weeks is finally getting bought-

Everyone waiting for the September sell down and it still doesn't show- and many of the usual short folks continue to lose money waiting for the top- not anxious to call it here.

THE DIPPERS

Markets closed higher but off the opening best levels with the SPX +9, NAZ +19 and the DJIA +56.

Strong sectors- reits, real estate, energy, gaming, semis and brokers while banks, ags, biotech and retail lagged.

NYSE- 1400 net winners.

NAZ- 575 net winners.

NDX- 71 GREEN.

SPX- 360 GREEN.

VIX- up 1.5% at 25.67.

Up volume about 2x the down and ignore the TRIN as it has become useless IMVHO.

Gold closes red at $996 despite the the dollar being down .75%.

RSI 2 about 90 on most major indexes - as the markets are over bought.

As expected the markets trended higher as the dips were bought - and I suspect that action will continue and the long side will be the place for profits.

THE OPEN

Equity markets are trading higher but well off the best levels as the big pop indicated by the futures was quickly sold.

SPX +4, NAZ +6 and DJIA +20.

Strongest sectors- metals, gaming, energy, commodities, emerging markets and real estate while retail, biotech, drugs, trannies and small caps lag.

NYSE- 900 net winners;

NAZ- 250 net winners;

NDX- 65 GREEN;

SPX 310 GREEN;

VIX- up 3% and trading near the SMA 10.

TRIN- .61 with up volume about 3x the down.

The dollar getting hammered and down about .8% at 77.55 and the EURO up 1% v the dollar at 1.4463.

RSI 2 levels at 85 on the SPX and about 90 on the NAZ/NDX.

The markets over bought here in the short term but I suspect they continue to buy them later on in the day and the rest of the week as it seems like folks just want to own stocks.