AFTERNOON ACTION

Shockingly, the markets have come back and regained much of the morning losses as trannies and techs lead the rebound. Bringing up the rear are silvers, metals, gaming, emerging markets, brokers, oil service, drugs and utilities.

Key stocks generally lower with RIMM CSCO MSFT AAPL BAM TIF PVH MRK AMZN YHOO all green while GS JPM CME NYX ICE NDAQ LEH BSC GOOG and KLAC are all red.

Biggest winners include FLA NSC BNI HPQ SLE CAT ATI RIMM NTAP ERTS ADSK BEAS JNPR AQNT WCG STLD WFR and X.

Crused symbols include MIDD ROCM AZZ DWSN GROW BTJ EP WMB LINTA EXPE and LRCX.

Volatility indexes are higher but hardly jumping off the screen as the VIX is now at 13.3 while the VXO trades at 13.11. They are over their 10 day SMA's but hardly overbought.

So I come back to the ranch and FLA is trading above the take out price, hmmm. Probably time to take half off and let half ride for a bit and watch to see if some other private equity team approaches.