PRE MARKET

We write less in better markets because it is mostly in bearish markets we separate from the pack. Remember, wall street is a fully invested, fed driven vehicle. With the central banks, we suspect you could clip off several thousand, if not more points.

The most important part of the equation remains a clear lack of institutional selling. It can start coming out of nowhere but even in the down week, it was just a pullback and we easily segued off the negative side on the Friday reversal two Friday’s ago.

The SEMIS are on the move.

The FINANCIALS set up here.

NEW HIGHS have been picking up but still not even close to very good.

THE ISSUES

RUSSELL 2000 weak.

TRANSPORTS weak.

MID-CAPS weak.

While better, FOREIGN MARKETS not even close to the U.S. The best markets are strong worldwide markets.

Bullishness and froth are showing up with some huge IPOs coming out.