MIDDAY UPDATE

Markets are just bouncing around in the early afternoon with losers slightly ahead of gainers - not that bad in light of the horrible jobs report-

Strongest sectors- airlines, metals, internets, gaming and retail while nat gas, ags, reits, energy and small caps lag.

NYSE-flat internals;

NAZ- 350 net losers;

SPX- 285/205;

NDX- 64/32;

VIX- down 5% at 24.1;

TRIN- .97- up and down volume about equal;

Equities are over bought in the short term - but I bet there are plenty of folks who want to buy the next dip- still thinking we can tag 1100 on the SPX next week- note the recent under performance of the EWA EWC EWZ of late - thinking that wont last and wondering if there may be a trade going long the EWC and short the SPX.

THE DIP

Equity futures WERE trading higher before the jobs report but have now flipped to red on the heels of the not as good as expected report. Job losses totalled 190k with the jobless rate falling to 10.2% - the highest level since 1983.

Birinyi just tweeted that historically on an NFP miss market opens down - trades lower than recovers and trades higher rest of day- agree and I that is how I will be playing.

Zero Hedge writing about Fred Hickey and his work.

BESPOKE on the SMA 50 for the various sectors.

MIDDAY LOOK

Equity markets are trading near the highs of the day as the news from CSCO is giving some bid to the tech stocks- SPX +15.5 NAZ +43 and the DJIA +171.

Strongest sectors- defense, semis, small caps, gaming, biotech and homies while ags, retail, metals, reits and drugs lag.

NYSE- 1750 net green;
NAZ- 1400 net green;
SPX- 450 GREEN;
NDX- 91 GREEN;

VIX- down 6% and trading 3% below the SMA 10.

TRIN- 1.1 with up volume about 3x the down;

RSI 2 levels as follows:

SPX 89
NAZ 90
NDX 92
RUT 76
DJIA 90
EWA 73
EWC 83
EWZ 88
EEM 87

Not doing much here as I am pretty long and looking to stay that way for now - and all the information this morning said that most folks are now bearish - so that is usually a pretty good tell to stay long - big jobs number tomorrow so that is always a shot either way- but suspecting better than expected and higher markets.

THE CLOSE

Equities closed near their lowest levels as the 50 day SMA on the SPX was again rejected - range for the day on the SPX 1061/1045 and a close at 1046.5- not real bullish -

Strong sectors- emerging markets, drugs, metals, semis and tech.

NYSE- 250 net winners;

NAZ- 550 net losers;

SPX- 290 GREEN;

NDX- 67 GREEN;

VIX- 27.9 and 6.5% above the SMA 10.

Probably a range trade for the balance of the week as neither the bulls nor the bears seem to have a leg up here- let em battle it out and see where we go next week.

MORNING MOVES

Markets up and moving on the heels of strong markets on the other side of the pond and a strong ISM number.

SPX +13, NAZ +20 and DJIA +128.

Strongest sectors- Brazil, homies, gaming, emerging markets, semis and tech while trannies, biotech, banks and internets lag.

NYSE- 1425 net green;

NAZ- 300 net green;

SPX- 415 GREEN;

NDX- 80 GREEN;

VIX- down 6% at 27.1- and still a few points over the SMA 10.

TRIN- .82 with up volume 3x the down volume.

The dollar is down about .66% and continues to lead the direction in equities- gold also at new highs - but way overbought - SPX also regains the SMA 50 and is a bit over bought with RSI 2 of 80.

Not sure I understand all the crowing about the elections- it was a dump the incumbent move more than anything else regardless of party affiliation and I wish that would happen more often- and were not Beck, Limbaugh and Palin the biggest losers with NY 23?

MIDDAY LOOK

Equities continue to struggle despite the recent merger activity with the SPX -5.6, NAZ -13 and the DJIA -65 at about 11.50 EST.

Strongest sectors - metals, trannies, gaming, biotech, oil service, homies and airlines while semis, banks, brokers, emerging markets and internets lag.

NYSE- 960 net losers;

NAZ- 725 net losers;

SPX- 135/360;

NDX- 33/66;

VIX- higher by 2% and above 30 and about 18% above the SMA 10.

TRIN- .99 with down volume about 2x the up.

Gold at a new all time high at near $1080.

The dollar up about .46% but off its best levels.

Thinking we may get a decent move off the lows this afternoon and I have picked up some EWZ which has bounced off the SMA 50- so slowly scaling in to more equity exposure.

NUMBERS

Equities are poised to open lower and continue their recent down trend - the dollar is trading up .6% at 76.9 and that continues to be the leading headwind to higher equity prices.

Energy prices and gold also lower before the 9.30 EST open.

The RUT, which was a big winner earlier has give back half its gains over the last few weeks - at its highs it was +25% and now is up about 12.7% while the SPX was +22% and now at 15.5%.

The NAZ continues to be the big winner - +29% on the year after being up as much as 39% about 2 weeks ago on Oct 21.

Bottom line - the drop off since the highs of a few weeks ago has been pretty dramatic.

THE RAMP

Markets are up up and away this morning on some better than expected economic reports- SPX +14, NAZ +15 and DJIA +117.

Strongest sectors- biotech, metals, banks, emerging markets and oil service while gaming, junk, internets and defense lag.

NYSE- 1460 net green;

NAZ- 600 net green;

SPX- 440 GREEN;

NDX- 84 GREEN;

VIX- down about 7% at 28.6.

TRIN- 1.18 with up volume about 3x the down and a little skewed as FNM FRE C all lower.

My key stocks generally higher led by AIG BAC FCX V AXP OIH MA and JPM while LVS RIMM WYNN SHLD INTC AMGN all lower.

RSI 2 levels around 50 on most major indexes and the dollar getting hammered this morning as loses almost .5%.