THE CLOSE

Markets closed the day at/near the lows as folks heard some pretty sour information first from CFC and then from Bill Gross who made the case for lower stock prices. I don't like to bash anyone for no reason, but at just about the bottom of the market in late 2002, Bill Gross had this to say about the DJIA. Please note that the markets bottomed in October 2002 and again in March of 2003 and it has basically been gone straight up since. Never did we come close to his numbers.

Anyhow, the DJIA closed down 1.6%, SPX -2%, NAZ -1.9%, RUT -2.85% and the Mids down 2.3%.

The strongest sectors were airlines and biotech while brokers, homies, utilities, oils and small caps were the worst.

In the green were AXE RRST GME GOOG CHKP TLAB AMLN UAUA QCOM AMGN;

Biggest losers included AAPL MICC PCAR CKFR MNST WFMI RIMM EXPE DD EXC AES AXP TXN ETR JPM CME MS MER LM LEH GS BSC and KLAC.

Market internals about as bad as they get with 870 winners on the NYSE/NAZ and 5,600 losers.

Volatility indexes way up with the VIX closing at 18.53 and 14% above the 10 day SMA and the VXO at 19.03 and 18% above the 10 day SMA.

Various 2 day RSI numbers:

SPX 12

DJIA 18

QQQQ 5

RUT 3

MIDS 3

My strategy will be to buy some exposure to the major indexes tomorrow as I expect a dip in the morning which will probably be bought later in the day.

On a final note, I never understand why when the markets dip 1.5% or 2%, CNBC treats it like the world has ended yet when almost every guest predicts a 5% or 10% correction they don't flinch thinking that it is ordinary and necessary.