HALF TIME

Markets remain lower although well off their lows with the NAZ and the small caps outperforming.

Strongest sectors include metals, oils and internets while airlines, trannies, real estate, homies, banks and financials are leading lower.

Key stocks are all lower with the exception of NYX and AAPL.

Strong stocks include ABT DELL DOW MEDI TWX T CVX and EP while S NSC MDT VZ WY LEH BDK HON FED are weak.

Market internals are improving and now show a net of about 1,500 red between the NYSE and NAZ.

The OEX/NDX/SPX show similar with about 3 stocks down to every 1 up.

Volatility indexes up about 7% after being up 15% a the lows of the day. Keep in mind that they still trade under their 10 day SMA's.

For anyone looking for some long term stocks, I suggest checking into BAM FCE.A FLA RWX and EWA. Marty Whitman's fund just came out with their January 31 report and they have added about 580,000 shs to their FCE.A holdings; and they own over 21% of the company.