THE 1200

Markets are off to the races again today as the bad ADP number from yesterday could't derail anything and just gave the bulls a chance to buy a pull back.

At midday - the SPX is +10, NAZ +12 and the DJIA +81- I suspect the next stop for the markets is DJIA 11k and then SPX 1200.

Strongest sectors- nat gas, metals, oil service, emerging markets, airlines and energy- laggards include tech, drugs, reits, real estate and retail.

NYSE- 1570 net winners;

NAZ- 650 net winners;

SPX 431 GREEN;

NDX- 73 GREEN;

TRIN- .5 with up volume about 6x the down;

VIX- 17 and about 2% under the SMA 10- it doesn't move - one day it will and I suspect it won't be long- of course that will be a/the buying opportunity.

RSI 2- levels near 80 on most major indexes-

Looking for the SPX to hit the 1200 level before long and have been buying pullbacks- latest purchases include UL BMY MGM GGP and EWC -

Of course looking to buy more pull backs - hopefully before SPX 1200.

MIDDAY FLATS

Equity markets are consolidating at midday with the DJIA flat, NAZ -1 and the SPX -1.5. Lots of low tick readings so we finally get a decent sell off-

Strongest sectors- nat gas, internets, ags, retail , tech and emerging markets- laggards include metals, gaming, banks, airlines and defense.

NYSE- 350 net losers;

NAZ- 325 net losers;

SPX- 225 up and 265 down;

NDX- 40 up and 57 down;

VIX- slightly higher and trading a hair above its SMA 10;

RSI 2 levels:

SPX 67

NAZ 63

DJIA 89

RUT 53

NDX 87

TRIN- 1.43 with down volume about 2x the up;

Bonds still not falling off the table as many expect with the yield on the 10 year at 3.87% while gold hangs in at the 1100 level-

The dollar is up again and just wondering if the big number on Friday will disappoint - causing rates and the dollar to dip ugly.

Not doing much today although bought some UL and GGP- UL is a longer term play while GGP is pulling back and lots folks are expecting a deal to be announced shortly - and their appears to be lots of interested parties -