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Monday's Closing Comment 4/26/2010

Bottom Line: Considering the weakness in bell weather names such as GOOG and GS, along with weak Crude and a firm Dollar, the majors actually held in pretty well.

The internals didn’t give us anything too exciting to highlight, with volume average and breadth near flat. Up volume vs. down volume on the OTC was flat as well. This is something we are paying much closer attention to now, thinking that a glaring divergence will help give us better insight as to when a trading top is close at hand. The Bonds were relatively flat as was the TLT, while our COT model continues to signal a rally in bond prices.

The YM’s came within a few ticks (11214) of a target we highlighted last week and as such, we are expecting to see some more than routine profit taking. But until we see specific form take shape such as falling in 5 waves and not 3, we think the dip buyer makes his presence felt by stepping up and doing what he does best.

Healthcare remains very much on the defensive. This is the soft spot of the tape right now and we would steer clear until sectors such as the RXP and BTK prove to us again they are worth playing.

We were stopped out of CVD today and added a long (NASDAQ:NTGR) and a short (NYSE:ABVT) as well.