Thoughts

Financials remained weak, and retailers such as Kohl's, Target and Coach were down.

Large-cap tech did well, but the market's reaction to Intel's earnings was disappointing.

The 10-year U.S. note auction saw a bid to cover below 3.00.

TBT is breaking up an important moving average.

The 10-year U.S. note auction was so-so, with a bid to cover below 3.00 (compared to the last several auctions at over 3.20). Indirect or strong holders were at 42% vs. 45%.

Meantime, TBT is breaking up an important moving average.

I can't see the banking group making a sustained advance until there are signs of expanding loan demand.

Banks were mixed after JPM's results.

Confidence in the ultimate economic impact of QE 2 ("The Tepper Effect"), a zero-interest-rate policy for as far as the eye can see, reasonable valuations, the calendar trade (as investment managers are pressured to perform) and a nascent reallocation from fixed income into equities seem to be the reasons for the remarkable market ramp that began in early July.