TAKEOVER TUESDAY

Markets are trading in a choppy fashion with the DJIA continuing to out perform the other major indexes.

The big news of the day, a $60 bid by Rupert Murdoch and his NWS media company for DJ. Made my day temporarily as I was long a little DJ (very little).

Aside from the newspaper industry, strong sectors include biotechs, oils, utilities, drugs, gaming and large cap value. To the downside, silvers (hammered of late), reits, airlines, real estate, internets, brokers, exchanges, trannies and small caps.

Lots of red remains on the screen with MS MER GS LEH LM BSC GOOG AAPL PG MO MRK MGM CTSH CME NYX ICE BOT and ISE all trading lower. MA and WINTEL are higher.

Market internals continue weak with a net 400 losers on the NYSE and net 600 red on the NAZ.

The NDX is about 45 up and 55 down; the OEX better at about 50/50 and the SPX a hair below the flat line at 230/270.

Volatility indexes fairly flat near the 14 level and a buy signal is in place with the 2 day RSI and the over bought VIX/VXO readings.

Probably a choppy trade for the balance of the day but maybe a rally later in the week.