Strong DOW day yesterday as UNH soars on a flip flop from the prez on drug rebates, BA bounces, GS strong as long yields back up. Most of the rest of the market under-performed. Amazingly, the small and mid caps were again down. Normally we would tell you this divergence must lead to disaster but right now, it is just about what not to be in versus what to be in and for the most part, it is the large caps.

A glance at the TLT shows a near term top as long yields back up. This should help financials as margins expand for now. A glance at the XLF shows very tight action.

GOLD and GOLD stocks remain bullish but seem to settling in here. We hope it takes more time and allows moving averages to catch up. We continue to believe the breakout was real but think there may be some time in here.