FLAT OPEN

Markets open fairly flat with the big caps leading and the RUT/MID/NAZ finally lagging.

Strongest sectors include metals, biotechs, oils, gaming, utils, trannies and airlines while real estate, semis, reits, retail and financials lag.

The Shark key stock group has negative internals with 13 up and 27 down. Higher are POT GRMN LVS MSFT and CELG while MTW KLAC RIMM NVDA C MER and MS are lower.

NYSE internals show 240 net green;

NAZ internals show 200 net red;

NDX- 40 WINNERS led by EXPD MNST XMSR NIHD GRMN JNPR ERTS INFY MSFT and CELG; LOSERS- MCHP S SHLD KLAC RIMM NVDA LAMR LLTC LOGI and IACI;

OEX - 55 WINNERS- led by EK MSFT AA GD MRK XOM IP VZ EMC DOW; LOSERS- S C LTD MER NSM TGT MS BDK HD USB BAX PEP;

Up volume- 130 M

Down volume- 111 M

VIX/VXO both down about 1% on the heels of the mixed market and both about 4% below their respective 10 day SMA's;

Looks like the markets have stalled out here and will probably trade lower in the near term. IMVHO any dip is an opportunity to buy as I suspect we will eventually rally through the end of the year as under invested folks buy for the seasonally strong period. I also suspect earnings come in better than expected which will also give the markets a little juice.

Finally congrats to Joe Torre for a nice 12 year run, but when a manager loses 13 out of the last 16 playoff games it is statistically significant and probably means its time to go.

Finally, AROD, time to stay as going to a 4th team for the last part of your career is not a good move - stay in the Bronx.