THE MELT

Equities have approached the EMA 20 on the SPX (1131) as they have sold off big time today- the SPX -16, NAZ -35 and the DJIA -140- as a sell the news mind set has definitely come into play. INTC and JPM were pretty good but no matter.

Strongest sectors- nat gas, bonds, retail, junk and real estate while semis, airlines, metals, banks and gaming lags.

NYSE- 1700 net losers;

NAZ- 1500 net losers;

SPX - 35 GREEN;

NDX- 8 GREEN;

VIX- higher by 7.4% at 18.93 and 2% above the SMA 10.

RSI 2 levels as follows:

SPX 19

NAZ 23

NDX 18

RUT 22

DJIA 18

XLF 19

XLE 15

TRIN 2.78- with down volume about 10x the up.

Probably going to dip in and buy some SSO DDM QLD near the close as a bounce back should happen on Turnaround Tuesday - other than that standing still.

MORNING LOOK

Equities are trading flat after opening higher this morning-SPX flat - NAZ +3 DJIA +14.

Strongest sectors- gaming, drugs, banks, oil service and tech while nat gas, semis, metals, retail and internets lag.

NYSE- flat internals;

NAZ- 150 net winners;

SPX- 205 GREEN;

NDX- 40 GREEN;

Gold down a hair at 1136 while silver is down 8 cents at 18.57.

Oil and nat gas both down very little.

VIX- down a bit at 17.73 and about 6% under the SMA 10.

TRIN- .99 with up and down volume about equal-

Still long LVS/XME /VVTV and just wondering about the recent under performance of the EWZ this has been a big dog during the last 12 months and now lagging -

Looking to add to LVS and XME - as I don't see the markets getting crushed anytime soon.

THE CLOSE

Equities closed a bit off their best levels of the day - but the markets did turn around and send the shorts home unhappy yet again.

SPX +9.5, NAZ+25.5 and the DJIA +54.

Strongest sectors- airlines, reits, silver, semis and banks while energy, ags, emerging markets and brokers lagged.

NYSE- 1200 net winners;

NAZ- 800 net winners;

SPX- 410 GREEN;

NDX- 91 GREEN;

VIX- down 2% at 17.85.

TRIN- .84 with up volume about 3x the down.

Bought the dip today and now am long XME LVS BAC and small guy VVTV - as it looks like equities will continue the upward move probably taking out the tough 1150 resistance level-

RSI 2 levels not that stretched at under 70 on most major indexes - I suspect lots of folks bought that dip as that has been the money trade for some time.

LOOKING TO DIP

Equities are trading a bit lower after starting out in green territory - SPX -1, NAZ -2 and the DJIA -4.

Strongest sectors- airlines, drugs, reits and tech while nat gas, energy, homies, semis and banks lag.

NYSE- 250 net red;

NAZ- flat internals;

SPX- 247/240;

NDX- 60 GREEN;

TRIN- 1.24 with up and down volume about equal.

VIX- 18.4 and near the unchanged level for the day.

Markets hanging in as I type and suspecting we may get a move higher before the day ends - areas I am looking at for longs include LVS XME EWC MS BAC-

FINALLY

Equities are selling off and pretty hard as the SPX is down 14, NAZ -36 and the DJIA -85.

Strongest sectors include nat gas, bonds, consumers, drugs and gaming while semis, metals, airlines, homies and real estate are the biggest losers.

NYSE- 1610 net losers;

NAZ- 1200 net losers;

SPX- 79 GREEN;

NDX- 7 GREEN;

Gold- down $14 at 1138 while silver is lower by 30 cents at 18.29.

Crude down 1.5 while nat gas is higher by 2% at 5.57.

TRIN- 1.8 with down volume about 8x the up.

VIX - higher by 9.5% and trading a hair under the SMA 10.

Equities finally working off the over bought levels that were attained yesterday when the VIX was more than 10% under the SMA 10 and the RSI 2 levels on the SPX was at/near 97-

So the sell off starts and I am looking to scale into some XME EWC and maybe some others- don't think today is the end so waiting for later in the week to scale into most of the trades.

Big Mark admits he took roids - not all that shocking - the big news is he said they didn't help him hit home runs- what nonsense- they only helped me with injuries - sure - that is why all these guys took these banned substances - cause they didn't think they would help

MORNING MUCK

Equities are lower this morning led down by the NAZ/NDX and tech- SPX -2, NAZ -13 and the DJIA -5.

Strongest sectors- gaming, metals, drugs, reits, biotech and trannies while oil service, airlines, internets, retail and tech lags.

NYSE- flattish internals;

NAZ- 250 net red;

SPX- 220/270;

NDX- 27/72;

VIX- 17.4 and about 11% under the SMA 10.

TRIN- .77 with up volume about 150% of the down.

Markets overbought at these levels - as RSI 2 was in the high 90's on the SPX - and with the VIX so far under the SMA 10- it was a pretty good bet that the market would sell down from those levels.