Thursday Morning Update

1008 is the upside target, 995 downside, so what happened? We bounced off 1008 at the open, wnet int a steep drop, and are bouncing off 995 as I write. I gotta hand it to HAL 9000, it's sure making it easy to make money for the quick day traders. Leadership today is XLI and XLY, with XLE, XLV, and XLU leading down. As usual on a weak day, the Dow is leading, the Nasdaq and Russell 2000 both lagging badly. Yesterday's move in AIG sucked in the retail investors, who gapped it up huge this morning and are now having their heads handed to them. There is wonderfully bullish news on the employment front. Things are getting much better because fewer people are losing jobs. Also good news, fewer people will be reported as unemployed because their benefits are running out. I would have thought that was bad news, but I'm just a dumb trader, not smart like the people on CNBC. See, I would think that good news would be that people were getting jobs. I guess that's why Liesman makes the big bucks.

I have 76 new highs, with a very large number of big gap ups. but few are moving higher. Take a look at SXCI, HMIN, SWM, MAIL, and FUQI. On the earnings front, reporting last night were ASGN down 3.8%, and DCP down 10%. Reporting this morning: AIPC down 5.4%, CTB down 0.8%, ENS up 11%, FSC down -1.7%, ORN down -10%, TNDM down 13%, VMED dowm -0.6%. After the close we have CPKI, ROVI, and NGS.