THE OPEN

Markets are trading lower on the heels of crummy housing numbers and more sub prime fear. All of the major market indexes are trading down about 1% except for the tech /biotech heavy NAZ/NDX. Those indexes are only down about .75%.

Strongest sectors include biotech, internets and airlines while homies, brokers, real estate, banks and trannies lag.

Market internals are very week with 2000 net losers on the NYSE and 1200 net red on the NAZ.

OEX -3 WINNERS- AMGN AA WMB- LOSERS- LEH MS LTD BAC COF USB TYC WFC MER XRX;

NDX -20 WINNERS- CHKP GRMN AMZN BEAS NVDA YHOO SIRI JOYG LBTYA LAMR FLEX XMSR NTAP AMLN AAPL XRAY;

LOSERS- COST MICC SHLD ROST PTEN NIHD LOGI TLAB CTSH LVLT JAVA EXPE;

Volatility indexes up about 8% on the VIX and 11% on the VXO- both trading about 5% above the 10 day SMA.

No rush to buy this dip just yet as we may get some real volatility today. So for now just watching.