NOON UPDATE

Markets continue to trade lower but are off their lows. NAZ -28, DJIA -76 and SPX -8.

Market internals still show more than 2,500 losers to winners and the only winning sectors are metals and oils. Worst sectors are semis, airlines, trannies, biotechs and internets.

Briefing now reporting that "strength in gold stocks attributed to view that surge in crude oil and gasoline prices bringing back the inflation hedge."

Also on the briefing wire "Olmert says Hizbollah will never be able to threaten Israel again" and "at beginning of political process that will bring ceasefire."

I have been listening to the VLO conference call and margins are huge, estimates are light and will be raised and the price of VLO is probably going higher with a share buyback adding buying pressure.