OPENING LOOK

Markets open weaker on the heels of the BNP Paribas news as the sub prime slime rears its head yet again.

Weaker is all relative and everyone should focus on the NAZ/NDX and the real estate stocks as they are probably providing a good hint of what is to come. The NDX is about to hit the flat line and the real estate stocks IYR are trading up to flat.

Strong sectors include biotech, airlines, semis, and real estate while brokers, metals, banks, defense and retail lag.

Winners- LVLT EXPE WFMI SNDK EXPD NVDA MCHP SBUX SEPR CSCO BHI AVP EK B PVG FLIR ARD ICE FTK SIMO SNDA.

Losers- GSOL SNHY HDNG TBSI GTI CF ESI PCR HD WY MER MS C BDK HAL TYC LEH BUD HIG AES LEH.

Market internals are 720 green 2340 red on the NYSE and 1190 green 1620 red on the NAZ.

The OEX is very weak with only 15 winners while the NDX isn't bad at 40 up and 60 down.

Volatility indexes up about 10% and way off their worst levels of the morning.

I expect this downdraft to be bought as it seems folks are looking forward to a rate cut from Big Ben. Lots of folks who put out shorts yesterday near the close are probably looking to cover and this AM is quite a nice gift to them.