AUGUST PUNCHED

Markets actually gained some ground in August after a tough July on the heels of sub prime / credit issues. Note the NDX is less than 4% off the July highs.

Some winners and losers for the year to date are as follows:

SPX +3.9%

DJIA +7.2%

OEX +4.1%

NAZ +7.5%

NDX 100 +13.2%

MID +7.3%

RUT FLAT

Small Cap Value -8.5%

Small Cap Growth +13%

Large Cap Value +2.1%

Large Cap Growth +6.8%

EFA +7.1%

EEM +17.3%

EWA +18.9%

SMH +12.6%

HHH +12.4%

AAPL +63.2%

GOOG +11.9%

XLK +12%

MSH +11.9%

OIH +28%

XLE +19.1%

VLO +33.9%

XTO +15.5%

DFX +16.2%

HGX -28.2%

XAL-20%

XBD -8.1%

GS -11.7%

MER -20.8%

BKX -9.8%

C -15.8%

BAC -5.1%

ICE +35.2%

CME +8.8%

MGM +46.4%

BAM +5.4%

HUI -3.3%

SSRI -5%

PAAS -1%

NYX -25.2% (Jim Cramer's favorite growth stock 2007)

LVLT -6.6% (Jim Cramer's favorite spec stock 2007)

MO +5.8% (Jim Cramer's favorite value stock 2007)

Question becomes can the markets continue to make headway without the financials - My guess - a little reversion to the mean as maybe we get some good news on the credit scene before to long lifting the BKX/XBD. Broker earnings around the corner- ? Tech/energy continues to outperform while homies/airlines continue their downward trajectory.