THE JUNK

Equities markets closed near their highs with the NYSE A/D line specifically closing at its best level- with 1650 net winners- SPX +10.36, NAZ +29.5 and the DJIA +106.

Strongest sectors- gaming, metals, emerging markets, semis and energy while brokers, banks, junk and utils lagged.

WINNERS- ATVI WYNN JOYG MRVL NVDA CAT PM XRX NSC FCX HAL;

LOSERS- S EXC MS MET BMY SLE MDT FLIR DISH EXPE XRAY APOL URBN;

VIX- lower by 5%+ and trading a bit under the SMA 10;

SPX - a bit extended in the short term with an RSI 2 level near 80;

Some warning signs on the horizon- the high yield market has been troubling of late with both the HYG and JNK off about 7% from their recent mid January highs - and they were barely green today - when they should have ramped-

MIDDAY REPORT

Equities are trading near the flat line after being lower earlier- the dollar again playing the big dog as it moved higher and now has flipped back down near support at the 80 area. SPX -.50, NAZ -1 and the DJIA flat.

Strongest sectors- brokers, banks, real estate, semis, reits and gaming while junk, metals, airlines, drugs and internets lag.

NYSE-440 net losers;

NAZ- 500 net losers;

SPX- 205 GREEN;

NDX- 45 GREEN;

VIX- lower by 2.5% and a bit over the SMA 10.

TRIN- .95 with down volume a hair better then the up and light over all.

Watching the dollar as it heads back to the 80 area and suspecting that support area will hold causing the equity rally to fizzle-

THE NUMBERS

Equities closed lower today after giving the upside a run in the morning- SPX -9.5, NAZ -15 and the DJIA -104.

Strongest sectors- homies, ags, junk, airlines and retail while metals, real estate, reits, financials and banks lagged.

NYSE- 850 net losers;

NAZ- 600 net losers;

SPX - 115 GREEN;

NDX- 45 GREEN;

TRIN- 1.99 with down volume about 3x the up.

VIX- 26.5 and higher by about 1.5% and about 10% above the SMA 10.

RSI 2 levels between 10 and 15 on the major indexes so another sell off tomorrow may bring some significant buy signals for the longs-

Also seems like support on the SPX near 1050 and below that at the SMA 200 at/near 1020- here we go.

WEEKEND STUFF

Equity markets didn't behave very well for the longs while I was gone but Friday certainly was interesting as the buyers stormed in to recover all the losses in the final hour of trading.

The SPX appears to be oversold for the time being and I did buy some stuff late on Friday - (MSFT MKC ABT SSO).

The VIX is still in over bought territory at about 9% above the SMA 10- while the SPX stands at an RSI 2 of 23- also note the stretch on the bands which are 3 standard deviations -

Trading the SPX now - definitely good support at Friday's lows and of course the SMA 200 at/near 1020-

Dr. Brett with some good stuff on Friday-

Trader Mike looking at some price levels;

The TRIMTABS guys wondering what happened to the guy;

And there are definitely some good reasons to invest in MSFT at these levels;

An update on credit ratings for various countries and states- pretty good;

Lots of hungry people in this country - too sad;