MORNING WATCH

Ugly sell down in the last hour yesterday as the DJIA gave up almost all of its triple digit gains and the SPX closed red and under the recent break out level of 1170.

How now- I suspect range bound as we are stuck under the 1170 and yesterday high level of 1180- and probably above the 1150 area as lots of dippers probably want to buy down there.

The VIX ripped about 5% and closed about 6.5% above the SMA 10- I suspect its going higher and SELLPUTS has an interesting take this morning.

Bill Gross now switching his sales pitch from bonds to stocks;

How many BIG accounting firms can we eliminate;

Could the TEA party doom the GOP chances?;

It happened a bit soon but the outs more than the ins;

RIP Johnny Maestro;

MORNING BRIEF

Just as I was about to blog that the futures were trading flat- they pop higher --

NQ +3.75;

ES +2;

YM +17;

Funny as I was and still am expecting turn around Tuesday to come through- RSI 2 levels over bought near 80- and the VIX will it just hovers near the lows between 16 and 18- and of late offers no value.

Gold trading at $1,100 while the Ten year bond hovers near 3.66%;

The action has been very dull as the market have just drifted up - one day it will get violent and I suspect its coming.

Dougie Kass announcing this morning that his favorite long is the double short RUT 2K - the picture is the double long- Dougie been wrong for a while - is he due for a big winner?

Anyhow- some good stuff from Barry as he checks a health care map - too bad they don't show it on CNBC;

Some problems with the energy data;

And GS planning on low rates for quite a while;