OPENING LOOK

Markets gap open higher but have given back much of the early gains as 14,000 on the DJIA was sold pretty hard. Never the less, market internals look very strong and push back to those levels before the close would not be surprising.

Strongest sectors include china, internets, emerging markets, semis, tech, trannies and gaming while oil service, real estate and reits are all lower.

Key stocks- 36 of 40 higher led by NVDA INTC JPM BIDU KLAC RIMM MTW LVS and DECK while ISRG C UA and BAC are lower;

NYSE internals +1,400;

NAZ internals +1,075;

NDX - 75 WINNERS;

OEX -80 WINNERS;

IBD 100-80 WINNERS;

Biggest Winners- SNP LFC CHL HDB VSEA NVDA SDA PDA MT BIDU JPM DELL CI LTD NXY HPQ MSFT XRX YHOO INFY CTSH AMAT KLAC EBAY;

Biggest Losers- PCAR DISH LLTC ERIC FAST ADSK ISRG LVLT UTX IBM GM ATI DOW CSC RTN BHI SII TBSI GLNG GSOL CLB SCHN;

VIX/VXO down about 8% and back to neutral after the morning ramp;

I still suspect some mutual fund selling as the years losers such as financials, real estate and reits continue to act poorly and fund year ends of October 31 are rapidly approaching.