Markets continue to trade lower (DJIA -140, NAZ -37 and SPX -15), but some good news can be found in the oil patch where the OIH is trading up $1 and the XLE +$1. Besides the price of crude rising, DVN announced this AM that they were forming a "Marketing and Midstream MLP." This has caused the price of DVN to climb $3.25 or 4%+ and is also causing jig in APA APC CNQ XEC and XTO. In addition to MLP's these companies can/will probably deliver shareholder value as take out candidates.

Good news can also be found in the Treasury patch where the flight to quality has caused the 10 year Bond to dip back under the 5% level. May not be a boon to equities today but before long I suspect it will.

PFE dragging the drug group on crummy a crummy earnings report and lower than expected Lipitor scrips. No clue why they didn't warn investors earlier as no doubt many investors knew this was coming.

Brokers crushed on the BSC news inlcude GS MS MER LM LEH - other times in the past few months that they have been beaten down on this type of news has been the buying opportunity.

LVS and WYNN mentioned yesterday as under performing gamers holding pretty well in today's market down draft.

DJ down another $1 on last night's news that the board says sell to Rupert, so still lots of folks thinking the Bancrofts still won't be happy and won't sell and want to see the price of DJ back at $35.

Real estate also crushed with the ETF IYR down another 2%;

Techs- ugly on the INTC YHOO news with GOOG AAPL TXN NVDSA SMH HHH all getting clocked; my guess is they get bought again after today;

Market internals ugly at red 1,700 on the NYSE and red 1,600 on the NAZ;

The NDX is 4 losers to every winner while the OEX is better with 3 losers to every winner;

IBD 100 worse yet with about 10 up and 90 down;

More good news, the VIX/VXO getting over bought as they approach the 7/8 % above the 10 day SMA level.

So hopefully we won't give back the whole 280 DJIA points we gained last Thursday.


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