FLIP FLOPS

Equity indexes are flip flopping around this morning as the dollar moves up and down - and is up about .2% as I type at 75.3 while the SPX is down 4.75, NAZ -14 and the DJIA -53.

Strongest sectors- semis, biotech, junk, drugs and retail while gaming, reits, metals, homies and brokers lag.

NYSE-1120 net losers;

NAZ- 1150 net losers;

SPX- 125 GREEN;

NDX- 20 GREEN;

TRIN- 1.19 with down volume 2.5 x the up;

VIX- down a hair at 21 and trading at 7.5% under the SMA 10;

RSI 2 levels on most major indexes near 50.

The photo above- the SPX v the EWA or the Aussie stock market- and it looks like the SPX is catching up - so maybe time to add more EWA v SPX - we will see.

It actually look like its time to take some time away from the machines as the markets probably do very little between now and the weekend - and that sounds pretty pretty good- so probably little posting between now and next week.

MORNING RIP

Equities open strong on the heels of higher prices across the pond and a dropping dollar.

SPX + 18- NAZ +37 and the DJIA +153;

Strongest sectors include metals, energy, emerging markets, small caps and airlines while junk, gaming, brokers and biotech lag.

NYSE- 2150 net winners;

NAZ- 1500 net winners;

NDX- 95 GREEN;

SPX- 477 GREEN;

VIX- lower by 3.4% at 21.45 and about 5% under the SMA 10;

TRIN- .53 with up volume about 12x the down;

Gold up about $20 at $1171;

The dollar is clearly the driver of equities and it is again bouncing off the 75 level which has been recent support- so watch that line as any dip below may prove to be a real problem for the dollar - as again old support becomes resistance.

RSI 2 levels on major indexes as follows:

SPX 77;

NDX 71

DJIA 83

RUT 76

XLE 68

XLF 71

FUN READS

Got my hands on the Wellington Letter which is written by Bert Dohmen- and it was a pretty good read- here is one of his bullish points on gold:

"With the huge 200 ton purchase of gold by the Bank of India, it is clear that the central banks will not sell their gold but accumulate more, quietly. Large investment pools and the wealthy around the world will also accelerate diversification into the yellow metal as a flight to safety from the disastrous policies coming out of Washington. Gold is better than paper. It is a scarce commodity. All the gold ever mined in the world in history will fit in two Olympic swimming pools. The quantity of paper is only limited by the number of trees."

Barrons with some decent stuff this weekend including an article on cheap dividend paying stocks - such as:

STD PE of 10.6 and 4.2% yield;

CVX PE of 10.1 and 3.5% yield;

INTC PE of 13.2 and 3.3% yield;

JNJ PE of 12.7 and 3.14% yield;

MRK PE of 10.2 and 4.3% yield;

WMT PE of 13.8 and 3.2% yield;

And BESPOKE with their look at yields on the SP 500;

An interesting look at TV;

Finally, I bet she didn't write it and he didn't read it - but good amusement anyway;