MORNING ISSUES

Equities are trading higher but lots of cross currents - SPX +3.5, NAZ +2.5 and the DJIA +40.

Strongest sectors- airlines, gaming, defense, retail, consumers and small caps while metals, semis, tech, biotech, drugs and brokers lag.

NYSE- 920 net winners;

NAZ- 600 net winners;

SPX - 360 GREEN;

NDX- 56 GREEN;

TRIN- .81 with up volume 2.5x the down.

VIX- flat and trading a hair over the SMA 10.

Gold down about $11 while the dollar keeps moving higher and now at/near 77.

Cross currents- yea - indexes looking ok except for tech and the naz which are lagging after starting out in the lead - JNK trading ok while the dollar is lots higher- - for now going with strong internals and buying some dips IN THE DJIA /SPX.

THE REVERSION

Equities are trading higher and continuing the move off the lows from yesterday- The SPX +8.5, NAZ +15 and DJIA +85.

Strongest sectors- nat gas, internets, energy, retail and ags while brokers, metals, reits, gaming, homies and real estate lags.

NYSE-900 net winners;

NAZ- flat internals;

SPX- 390 GREEN;

NDX- 78 GREEN;

TRIN- .92 with up volume about 2x the down;

VIX- 22.2 and lower by 2% and trading about 2% under the SMA 10.

RSI 2 levels at near 80 on most major indexes with the NDX/QQQQ over 85.

One winning group today is energy and it has lagged since late October and may be ready for some reversion to the mean trading- so buying some DIG and still long BRF GDX QLD QQQQ.

THE CLOSE

Equities did what they were supposed to do - rally from oversold levels- SPX closed +4, NAZ +11 and DJIA +51.

Strongest sectors - metals, oil service, tech, semis, Australia and Canada while nat gas, gaming, internets, retail and reits lagged.

NYSE- 260 net green;

NAZ- flat internals;

NDX- 60 GREEN;

SPX- 275 GREEN;

TRIN- 1.14 with up and down volume about equal.

VIX- down about 4% and trading a hair over the SMA 10.

Gold about unchanged and the dollar down a bit.

Sold some QQQQ that I bought earlier in the day but holding some for a rally continuation- also owning some GDX and BRF for further upside action-

MORNING UPDATE

Equity markets are trading lower yet again as the bulls are having a difficult time catching a break of late. SPX -3.75, NAZ -13 and the DJIA -22.

Sector strength - metals, nat gas, oil service, ags, junk and drugs while airlines, gaming, retail, internets and defense lags.

NYSE-885 net losers;

NAZ- 900 net losers;

SPX- 137 green;

NDX- 17 green;

TRIN- .53 with up and down volume about equal-

VIX- flattish an trading about 5% above the SMA 10.

RSI 2 levels in buy territory on most major indexes as they trade near 10 except for the RUT which is out performing of late.

Gold- trading up 10 at 1140 while the dollar is down a tad at 76.46.

I am scaling in to some QQQQ /QLD and some GDX- also may add to DGP which I have been in and out of lately.

The Brazilian small caps also look interesting BRF-

UNEVENTFUL CLOSE

Fairly uneventful day in the equity markets as the SPX closed down 2.75, the NAZ -5 and the DJIA +1.

Strongest sectors- nat gas, defense, semis, airlines and biotech while gaming, reits, metals, banks and brokers lagged.

NYSE- 275 net winners;

NAZ- flat internals;

SPX- 235 up and 255 down;

NDX- 45 GREEN;

TRIN- 1.55 down volume about 1.5x the up;

VIX- higher by 4% and about even with the SMA 10.

RSI 2 levels on major indexes as follows:

SPX 43

NAZ 63

DJIA 45

NDX 37

XLE 9

OIH 8

DBC 8

EWA 12

So some stuff in pullback areas but thinking we go lower so holding some powder dry- did sell some DGP today to lower the exposure and take a little risk off the table although I suspect we go higher before long.

MARKET MOVES

Equity markets are trading near the flat line in an uneventful session unless one is involved with the metals.

SPX +2, NAZ +3.5 and DJIA +26.

Strongest sectors- nat gas, oil service, semis, retail, small caps and defense while gaming, metals, airlines, brokers and reits lag.

NYSE- 600 net winners;

NAZ- 275 net winners;

SPX - 320 up and 175 down.

NDX- 67 GREEN;

OEX- 60 GREEN;

TRIN- 1.37 with up and down volume about equal-

RSI 2 levels near 70 on most major indexes.

Markets just look to be bouncing around and don't really have a good feel for direction- the dollar is again heading lower but gold isn't moving up so nothing clear to me today.

Jeff Saut - who has been great on the rally - getting a tad nervous;

FORBES on US home prices;

TRADER MIKE and his take;