NOON UPDATE

The adage is that markets that are weak most of the day tend to close at/near their lows. Today should be an interesting test of that saying as the internals are skewed way to the bearish side (-3,300) led lower by small caps and techs.

The Volatility sisters are higher as fear abounds (hardly) with the VIX at 13.4 (+6.5%) and VXO(+11.4%) 12.5. Doesn't seem that high with the recent drubbing, but may be the beginning of a new trend with markets generally lower as the unfriendly month of September gets into high gear.

The only sector higher is the metals with the banks trying to rebound to the unchanged level. Worst sectors continue to be semis, oils, biotechs, internets and small caps.

If the oils gets drubbed a little more I will probably dip another toe into the VLO/FTO/XLE/OIH group.

For now, I have joined the downside bandwagon and am short the QQQQ, SPY and Dow futures.