GARY ON THE MARKETS!

Just reporting the facts:
New highs versus the market horrid. This simply means fewer and fewer stocks are working while the big money finds mega-cap names.
Advance/decline figures have been heading south while the big cap indices hold up. This means the underlying market is weakening.
The strongest areas like the SEMIS and TRANSPORTS are under distribution here. The market cannot afford to lose these areas. You can also add ENERGY to this.
Tons of IPOs continue to hit the market. Just this week, over 20 IPOs will come public. This is a sign of froth as well as extra supply on the market.
Weaker areas like HOUSING are flat out breaking down.
The RUSSELL 2000 and SMALL CAP 600 remain very weak versus large cap indices but we must note that the DOW is teasing breaking the 50 day as a decent number of DOW names acted poorly off of earnings.
Lastly, we remain of the belief that a good amount of the economy, assets and the market has been put on a humongous dose of steroids by the Fed. The Fed, to their credit, are finally rolling back the printing of money. But the big question is whether they are late in doing this.
Just recognize in a bunch of areas, the complexion has changed and is changing.