LOWER MARKETS

Markets open lower on the heels of worse than expected inflation news and some overbought markets.

Strongest sectors include metals and oils with just about all else lower. Worst groups are homies, reits, semis, utilities and tech.

Jim Awad on squawk with some terrific advice saying he sees the markets having trouble in 2008. Just wondering how I play that now> The continue great stuff from CNBC.

Market internals are very weak with a net 850 losers on the NYSE and net 600 red on the NAZ.

The internals on the major indexes are also weak with 33 up and 67 down on the NDX; 23/77 on the OEX and about 135 green 365 red on the SPX.

Key stocks are mainly in the red with AAPL ICE and NYX bucking the trend. Worst in the red are GS and BIDU.

The small and mid cap indexes are again outperforming the big caps and I suspect before the day is over the markets will be higher than they are now and I am looking for some entry points on the futures.