OPENING FLIP

Markets opened higher but have since flipped lower on the heels of a lower than expected ISM numbers.

Strongest sectors include gaming, tech, oils, drugs, utilities, real estate and small cap growth. Worst groups include banks, brokers, metals, trannies and large cap value.

Strong stocks include BWLD GROW HOLX MICC MIDD MGM MRK GM FISV NIHD LRCX and WYNN.

Weakest include CHKP SUNW ERIC CTSH INFY UAUA KFT COF FDX RF WM LEH C AXP and MS.

Key stocks are generally lower with the banks and financials getting hit hard. MTB is hit on the heels of some crummey news on the Alt A front and of course no mention that BRK owns a big chunk (6%) and it has been a great stock over many years.

Volatility indexes up another 4% and the NAZ now getting hit harder - short QID.

I mentioned last week that I increased my short hedges as I expected some weakness over the next few weeks. Obviously not sure how long or how much lower.