MIDDAY LOOK

So the markets opened at the highs and have been selling off since as the "fade the gap" traders have coined some quick dough.

The DJIA is +101, NAZ +14 and SPX +8 while the RUT is still the best performer up .85% while the SPX is up .55%. The middies and the OEX are both up about the same as the SPX.

Checking the sectors, silvers, metals, homies, software, small caps, defense, brokers and biotechs are leading while airlines, semis and banks are all trading lower.

Its not a great sign to see the markets way up while the banks and semis are red. Probably a preview of coming attractions so I don't plan on buying as I expect lower prices next week and have sold some individual stocks this AM.

Winners include CAT HON ATI AXP GOOG XRX GD WMB XOM and MRK while COF HAL MCD AMGN BAC TXN PFE and IBM lag.

Market internals also way off their best levels with about 1,500 net gainers on the NYSE and 925 net green on the NAZ.

The NDX internals have also come in and now show about 70 up and 30 down while the OEX is a bit better with 80/20 green to red.

Seven losers on the DJIA and not surprisingly they include GE PFE IBM MO and JNJ.

Also, note the VIX is about flat while the VXO is barely changed. On a day with the DJIA +100, these indexes should be down 5%.

Repeating, I expect lower prices in the middle of next week and I am looking to trim some individual equities and may add to some oil stocks.