MIDDAY CRUSH

Lots of important stuff happening today - beatles, the Prince, Rangel and probably even more stuff but I am going to focus on the crushing of the equity markets.

As I type - SPX -21, DJIA -205 and the NAZ -45.

Internals as ugly as they get:

SPX 17/482;

NDX 4/96;

NYSE 2655 net losers;

RUT 175/1665;

RSI 2 levels - most major indexes @/near 2;

10 year note unchanged at 2.911%;

VIX +13% @ 22.8 and about 17% above the SMA 10;

SPX about 10 points above the SMA 50 @1165.

Gold/commodities crushed as the dollar rips higher +.9% on the DXY @79.39- the highest level since the end of September.

I bought some stuff higher and hanging on for now as I suspect a bounce coming shortly - although a close today at /near the lows would not surprise- so may add at end of day.

MORNING CHECK

Equities are trading a bit higher led by gaming, banks, brokers, trannies and biotech- lagging sectors include internets, nat gas, homies, emerging market bonds and semis.

Gold up $3 and silver higher by .6% at $26.21;

Oil up 50 cents at 85.35;

Equity internals:

NYSE 730 net winners;

NDX 64/36;

SPX 350/140;

RUT 1150/625;

WINNERS- F MS DELL LOW CL RF WFC NSC HPQ JOYG WYNN VRTX LINTA CTAS;

LOSERS AMZN EXPE MRVL QCOM PCLN XLN ERTS BIDU UNH DIS EMC WAG;

Still looks to be buy the dip time but looking for a rally that lasts more than a morning-

EARLY QE LOOK

Equities took a drubbing last week on the heels of a scare out of China that they were nipping growth in the bud- probably not going to happen.

This morning - futures are moving up as the dollar is down - and the markets are a bit over sold- in the short term:

RSI 2 readings as follows:

SPX 9

DJIA 5

NAZ 9

NDX 7

GOLD 11

VIX- not telling much as it is about 6% above the SMA 10.

Bought some USO on Friday and looking to add more longs today as I suspect equities will rally into the end of the year- lots of folks under performing whose main hope is to buy dips - and it just dipped.

Just read the WSJ post by Alan Blinder on QE2- liked it and agree with it - he makes lots of good sense.