MIDDAY MUSE

Markets are trading a bit higher but off their best levels- - I suspect prices would be higher without the action in the dollar which is up .7% - NAZ leading along with DJIA while SPX lagging at +.66.

NYSE- 220 net losers;

NAZ- 500 net winners;

SPX - 260 GREEN;

NDX- 61 GREEN;

VIX- down 1.5% at 23.8.

TRIN- 1.16- with down volume slightly greater than up.

WINNERS- TXN IBM LMT ETR CVX INTC NTAP LRCX ALTR BIDU ESRX ISRG;

LOSERS- INFY YHOO WYNN ROST STLD S NYX HAL NOV COP AXP DVN COF FDX NKE;

Gold down about $10 on the dollar action.

Looks to be a choppy day - but next week could find a move above recent highs if the dollar doesnt start to move up -

THE CLOSE

Another good day for folks who are holding equities and metals as the SPX closed +8, NAZ +14 and the DJIA +61.

Strong sectors- homies, gaming, oil service, energy, trannies and airlines while semis, biotech, ags and junk lagged.

NYSE- 1330 net winners;

NAZ- 450 net winners;

SPX - 385 GREEN;

NDX- 70 GREEN;

VIX- 24.2 down 2% and about 7% under the SMA 10.

RSI 2 levels:

SPX 92;

DJIA 90

RUT 91

NAZ 91

NDX 91

EWA 96

EWC 95

EEM 93

EWZ 98

Gold 99

Silver 96

Also note the new all time high in FAX - the closed end Asian high income bond fund-

SPX got within 10 points of the recent highs today before pulling back and I suspect before long we will be above those levels- name of the game buy the pullbacks - as long as it keeps working - and they are short and quick.

MIDDAY LOOK

Markets continue way higher - with the SPX +11, NAZ +25.5 and the DJIA +92.

Strong sectors- homies, gaming, airlines, oil service, real estate and reits while semis, biotech, ags, junk and banks lag.

NYSE- 1755 net winners;

NAZ- 1000 net winners;

SPX- 420 GREEN;

NDX- 77 GREEN;

VIX- 24.1 and about 7% under the SMA 10;

TRIN- .72 with up volume about 5x the down;

EWA EWC EWZ all ramping and out performing the US indexes- as the dollar index is down about .7% - gold - high for the year and all time at $1057.

Note the reuters article on the gold/silver coins posted yesterday was a bit outdated - here is the release from yesterday from the US MINT- about the same except they will be selling the buffalo gold coins.

Still looking to hit the recent highs on the SPX near 1080 - and note the RSI 2 levels near 95 on the SPX and a bit higher on the DJIA.

ANOTHER RAMP

Equity futures way up this morning as follows:

ES +8;

NQ +11;

YM +68;

Overseas markets way up driving the price action while the dollar is down about .6%- gold a new all time high and now trading near 1057.

Markets all in overbought territory yet again with gold lead leading the pack as the futures now trade at RSI 2 of 99- ES not so much at a level of only 93- and targeting the recent high of 1076.

Windows 7 reviewed by Mossberg in the WSJ;

Clusterstock on why the dollar collapse is a huge part of this rally;

And a very interesting gold chart;

Markets and the economy;

MORNING BUCK

Markets are chopping around the flat line this morning and as long as the dollar points north I suspect we will have trouble making any bullish progress.

Stongest sectors- oil service, banks, internets, gaming and junk while homies, biotech, reits, defense and airlines lag.

NYSE- 450 net losers;

NAZ- 350 net losers;

SPX - 180/320;

NDX 34 GREEN;

VIX- down 1% at 25.35;

TRIN .69 with up and down volume about equal.

WINNERS - AMZN COST SLB CVS UNH SHLD CERN RIMM BIDU APOL STLD;

LOSERS- CEPH ORLY INFY KLAC XLNX T LMT VZ LOW BA TWX GD WY MRK;

Very choppy day so far and one full eye focused on the dollar which is definitely on an uptrend on the 30 min chart. Not sure how long it lasts but if it turns down equities probably rip higher.

OFF THE BEST LEVELS

Markets closed off the best levels of the day but with a nice gain never the less- and I did sell some DGP near the end of the day.

Strong sectors- metals, oil service, internets, retail and energy while reits, junk, trannies and banks lagged.

NYSE- 1760 net winners;

NAZ- 1250 net winners;

NDX- 91 GREEN;

SPX- 421 GREEN;

VIX- 25.7 and down 4% and trading near the SMA 10.

TRIN- .86 with up volume about 4.5x the down and light overall at 1.25b shs traded.

RSI 2 levels as follows:

SPX - 82

DJIA -84

NAZ 81

NDX 82

RUT 81

GOLD - 97

Silver 91

So markets over bought again and I suspect we rally back to today's highs tomorrow and witness a similar sell off- That is the current plan of attack.

THE TRADE

Markets continue to move higher - as the dollar continues to get hammered - SPZ +16, NAZ +34.5 and the DJIA +133.

Strongest sectors- metals, gaming, energy, homies, emerging markets and semis while drugs, consumers, airlines and trannies lag.

NYSE- 2260 net green;

NAZ- 1450 net green;

SPX - 470 green;

NDX- 99 green;

TRIN- .55 with up volume about 15x the down;

VIX- down 5.5% and 2% under the SMA 10.

Gold - new highs at +10401.

Dollar whacked at 76.35 and a bounce is no doubt right around the corner.

Looking to take some stuff off the table this afternoon as the RSI 2 levels head to near 90 while the dollar moves to under 10- I suspect that reverses rather soon and brings the equity market lower- also selling more DGP into the rip.

PRE MARKET RIPS

Equity futures are ripping higher this morning as markets around the world are moving higher- AND gold up into the 1035 area while the dollar is down almost .5% at 76.47-

The reason for the dollar carnage - this here;

Dr. Brett with more market tells;

MGM finally cutting prices at the city center;

Issues at the empire state;

Healthcare reform seems to be getting some traction;

The importance of the SMA 50;

Paulo Pelegrini and his plans;

More on DAVE;

PM PLAN

Equity indexes are trading near their highs for the day and stats are looking like they want to close near the highs- wherever that may be.

Strongest sectors- nat gas, gaming, metals, reits, real estate and banks while crude, consumers, tech, drugs and homies lag.

NYSE- 1660 net winners;

NAZ- 1000 net winners;

SPX- 400 GREEN;

NDX- 83 GREEN;

WINNERS- COF WFC DOW MET AA JPM NTAP JOYG STLD WCRX URBN LINTA SHLD;

LOSERS- MSFT VRTX CELG NVDA DTV HANS S CVS CL PG MDT BK KO XRX EXC CPB MRK;

TRIN- .55 with up volume about 7x the down;

VIX- down 4% and trading about 7% above the SMA 10.

Gold getting a bit and trading at 1012 as the dollar starts to sink under the 77 level.

Looking to add to my SSO position on dips as all signals are pointing north and a close near the highs- also looking at adding to DGP as this thing feels like it wants to go to new highs.

HEADING HIGHER

Equity markets are set to open higher with the futures trading as follows:

ES +5;

NQ +9.5;

YM +38;

The usual on the fx market with the dollar down a bit the EURO up a bit v the dollar while gold is higher at 1006 and crude is down less than a buck at $69.2.

I am liking the looks of the equity markets here as long as we stay above the SMA 50 at around 1022 on the SPX.

Twins and Tigers playing tomorrow in a one game playoff and the Yanks ended the season with a bang as they exploded for 10 runs in the 6th v the Rays-

Weekend links:

VIX + MORE checking out the TRINQ;

A timely Ten from IQ Trends;

BESPOKE charting the EWZ;

Don't miss the rally!!!;

Birth death adjustment back in the news;