BACK ON MONDAY

THE CLOSE

With all the garbage that CNBC does cover during the day, did they once mention that the RUT 2K index was the big winner closing up 2.3% while the DJIA closed slightly red and the NAZ/NDZ way red. I guess no explaining why folks want lousy, non global small caps.

Strong sectors included banks, brokers, airlines, real estate, small caps, value, homies and retail while metals, xchanges, gaming, oil service, tech and internets lagged.

Market internals closed red with the NYSE with 800 net losers and the NAZ with 375 net red.

The OEX with 40 up and 60 down while the NDX with 2 down to every 1 up.

Volume back to the 3 B level with 1.3B up and 1.66B down.

Vix closed near the unchanged level after being up over 20% near the market lows.

XLF, my ETF long, closed up 3.7% while BSC finished up 13%; LEH +6%; and MTB+8%;

Metal stocks the real losers of late with FCX PAAS SSRI BHP all down huge over the past few days- probably the next area where one will find big winners as all those who had to sell have probably sold.

THE LIMB

OK, with the VIX up at 37+ and higher by 20%+, I am declaring a buying opportunity as it feels like a little capitulation in the markets. Besides, if Acampora is correct and the VIX gets to 50, how much lower is that?

Strongest sectors include banks, reits, small cap value and real estate while metals, gaming, homies, oil service and brokers are the worst.

WINNERS- USB WFC BAC DIS WB PEP NTAP INTU ROST ERTS PETM PDCO XRAY SIAL HURC PRFT CPLA CEDC.

LOSERS- TBSI PDE CPL DRYS DSX RIO ACH CF ICE STP POT ATI AA GM AES SLB F BNI NSC FDX CAT AKAM MICC NIHD PCAR WYNN MGM LVLT AAPL DISCA NVDA RIMM.

VIX up 21% and trading at 37 - start buying. 50 not far away.

Market internals - -2555 on the NYSE and -1730 on the NAZ;

IBD 100 with 3 winners - HURC PRFT MORN;

NDX with 10 winners- NTAP INTU ERTS ROST PDCO SIAL SUNW XRAY LLTC;

OEX with 12 winners- USB WFC BAC WB ALL DD RF DIS PEP PG SO WMT;

The 2 day RSI on major indexes (lol):

All at 1 or 2;

No where to run no where to hide. Looking for Cramer to tell me where the bull market has been the past month. Thanks. Oh and check the Xchanges- CME -31; ICE-13; NYX -4 and now trading at 66 after being Jimmy's favorite growth stock for the year when it was at/near 100.

Anyhow, scaling into some ETF's and finally selling some QID.

MORNING TRADE

Shocking, but the markets are lower again this morning on the heels of more bad news- MCO predicts a major hedge fund will fail and sees large impairment losses at many banks. Now for the good news, the RUT is green, not the safe large caps but the lousy risky small caps.

Strongest sectors include airlines, banks and small caps while metals, xchanges, gaming, oils, defense, brokers and internets continue to get hammered.

The action on the XCHANGES- CME -21; ICE -9; NYX -3.6 and NMX -6 all stand out.

Winners- NTAP INTU GILD XRAY ISRG VRTX LINTA PDCO SIAL INTC BAC USB PG SO WB RF DD HNZ WFC PEP HURC PRFT AIRM LKQX CEDC ARD.

Losers- TBSI DSX ACH TKC CPL BIDU ICE POT VIP PCP DRYS CNH FTK ELP PDA MR ATI AA AES GM EP WY SLB F COP BA DOW FDX TYC LTD AKAM NIHD MICC AAPL BEAS JNPR.

Internals - awful as usual with 730 UP and 2500 down on the NYSE and 1100 up and 1800 down on the NAZ.

The OEX with 25 winners and the NDX much better with almost 40 stocks in the green.

VIX index up another 9%+ and trading at 33.5 - only 16.5 points away from Acampora's target.

My guess is if the market does rally a bit - the shorts will be all over it- So be careful with the longs as the reaction to the news continues to be poor.

REACTIONS

Markets are set for another lower open on the heels of problems in the currency markets (rippin Yen). My take, the markets would have rallied yesterday except for the bad news that hit the wires regarding the issues at CFC. So until the news cycle changes or the reaction to the news cycle changes, the markets will probably follow the path of least resistance, lower, regardless of how oversold it becomes or where the VIX trades.

FWIW, I remember trading in October 2002 (I believe it was the 10th) when all of a sudden the futures ripped higher on a bad consumer confidence report and I realized the reaction to the news changed drastically. The NDX ripped from 800 to 1,100 in about 2 months and all the shorts got slaughtered. Probably happens again - only asking that someone let me know first before it happens.

GOOD + BAD

Markets continue to trade mixed some some bright spots and some crummy ones. The RUT and value stocks continue to lead while the NAZ/Tech aren't doing so well.

Strong sectors include financials, biotech, drugs, brokers and utilities while silvers, metals, airlines, gaming and homies lag.

WINNERS- VRSN VRTX AMLN SPLS GILD NTAP HNZ ALL USB CBS BAC MSFT GMCR SF VSDI VIVO SF LKQX PCLN CNH.

LOSERS- CPL ACH PVG PCR DSX CF LFL ICE LTD COF WMB EK TGT NSM CAT GM WY LEH UAUA ATVI MNST AKAM SNDK AMAT JNPR.

Market internals lousy on the NYSE with 660 more losers than winners while the NAZ internals are flat.

NDX internals about 50/50 between winners and losers while the OEX is much better with 2 up to every 1 down.

IBD 100 crummy with about 30 green and 70 red.

Volatility indexes flattish and VIX trading near 28.

The good -the internals on the OEX - the bad -the internals on the IBD 100 and the action in semis and tech. Curious to see the afternoon action.

MORNING MARKETS

Markets trade mixed to higher on the heels of over sold conditions and a lack of bad news yet today. The RUT is of course the big winner on the day.

Strong sectors include real estate, financials, small cap value, retail, software and internets while metals, gaming, airlines and semis lag.

WINNERS- VRSN SPLS CTXS VRTX CHRW GILD HNZ USB ETR ALL WFC DD BAC CNH VDSI BCSI SF GMCR FCSX TRAK CF HMSY FSTR.

LOSERS- CPL ACH NILE PRFT ATN ICE VSEA STP PVG POT LFL GM LTD CSC TXN TGT AMGN NSM UPS EK AMAT ATVI SHLD JNPR LOGI MNST FLEX.

Market internals are mixed with 1530 winners and 1600 losers on the NYSE and 1600 winners and 1200 losers on the NAZ.

The NDX shows about 3/2 winners to losers while the OEX is far better with 70 up and 30 down.

Volatility indexes flattish as the VIX hangs in near the 27 level. Retiring "guru" Ralph Acampora expecting a VIX near 50 before the correction/bear mkt ends. Note to Ralph, I don't think so.

CLOSING THOUGHTS

Markets closed at their lows amid a continuous flow of bad news from WMT HD TMA LMT and MFA.

Strongest sector was biotech while real estate, brokers, homies, metals, retail, internets and airlines were the worst groups.

WINNERS- WYNN ATVI NVDA XRAY XMSR SIRI BIIB BEAS GILD GENZ DWSN NVDA CF OII ABB FSTR HURC TDG BCSI VIVO TPX CPLA TLVT.

LOSERS- LFL VDSI FCSX GRMN RIO SMSI NILE CMG PCLN CMED DSX VSEC AMAT LAMR MICC SNDK AKAM JNPR FAST CHRW.

Internals were lousy all day and closed near the low with about 2,500 net losers on the NYSE and 1,400 net losers on the NAZ.

The volume on the NYSE was about normal with 153M to the upside and 1.63B to the downside.

Volatility indexes closed up about 5% with the VIX now trading at 27.68, still lower than the recent high near 30. So less fear and less expensive options at lower prices, hmmmm.

The pictures show a pretty obvious bullish divergence on the SPX chart and even on the VIX. Problem is that its very difficult to get aggressively long when bad news seems to come out of the news wires all day every day.

NOON MARKETS

Markets continue to trade lower although way off their "Sentinel" lows as the prior lows have now been tested.

Sectors displaying some strength include biotech and oil service while brokers, homies, real estate, metals, and retail continue to act poorly.

Winners- NVDA ATVI VRSN WYNN GENZ CHKP XRAY MRVL GILD HAL ALL CVX HON AMGN MDT WFC ROK JNJ BAX COP DWSN CF FSTR PCR OIL.

Losers- VDSI FTK PCP RIO CMED ANDE GEO SMSI CMG VSEC WMT LEH WY GS MS TGT AES COF LAMR SNDK GRMN NTAP MICC SHLD LVLT VRTX.

Internals continue weak with 1,725 net losers on the NYSE and 840 net red on the NAZ.

The NDX with 3/1 down to up while the OEX is worst at 4/1 down to up.

Volatility indexes near the unchanged level as the price of protection remains unchanged despite the 100 point drop on the DJIA.

OK - double bottom /positive divergence is in the books and lets see what happens - I am sure this fish is not the only one watching the charts.

MORNING MARKETS

Markets trade lower this am on the heels of lousy numbers from WMT and crummy action in the financials.

Stong sectors include biotechs, oil service, semis, airlines and gaming while brokers, metals, homies, retail and trannies lag.

Winners- WYNN DNA DFS NVDA UAUA VRSN SYMC ATVI RYAAY ALL HAL NSM MO AMGN INTC JNJ DWSN NVT CF TTEC TDG PCR GMCR DRC OIL.

Losers- ANDE CMED VDSI GES DK UA DSX LKQX RIO TBSI SJR WMT IP WY TGT GD GS HPQ CSC EK AES EMC RTN.

Market internals lousy with 900 net losers on the NYSE and 300 net red on the NAZ.

The NDX with 35 up and 65 down while the OEX has 3 down to every 1 up.

IBD 100 similar to the NDX.

The brokers continue to tell the story as they started the day unchanged but have sold off from the open. The big banks also lower as are real estate stocks which are getting crushed yet again.

Biotech a good spot with AMGN DNA GENZ GILD all higher;

Metals all lower;

Volume yet to be mentioned by Haines but it is 4/1 down to up;

Volatility indexes unchanged.

The good news- Positive divergences developing on the major indexes as they go lower- Note the MACD Histogram which will make a higher number when/if we touch the old lows. Also check the stochastics- should also be a positive divergence when and if.

THE CLOSE

The baton seems to have been passed back to the NDX to lead as the tech heavy index closed up .5% compared to a lower /flat RUT/OEX/SPX /DJIA.

Strongest sectors included tech, trannies, oil service, retail and biotech while homies, metals, brokers and small caps lagged.

Bell weather stocks that closed ugly- GS C MA WB WFC JPM LEH MER CME ICE CSCO KLAC VLO XOM LVS PG GE CVX AXP.

Winners- SHLD ADSK S JNPR DISH MNST QCOM NTAP CSC EMC ROK SLE AES S WMB WY HPQ VSEC CF FTK DRC TBSI DSX DK PCR FCSX FSTR MTW.

Losers- SMSI LKQX WNR UA STP PVG EDC CLB ARGN GEO WBD SO ABT LEH ATI XOM HD PG AEP EP SEPR ALTR SIRI XMSR ERTS COST MCHP ERIC BRCM LVLT.

Market internals closed slightly red on the NYSE/NAZ and even on the NDX. The OEX much better with 3/2 up to down. The IBD 100 closed with about 55 up to 45 down.

Volatility indexes closed down 7% as we finally had a non volatile day. Up /Down volume about equal.

Financials gave up their gains early in the session and were a pretty good signal that the rally was going to get sold. In addition, the rapid deterioration of the internals also said - sell.

And biotechs moving higher- what is with that. Real estate -ugly again after a few days of reprieve.

2 day RSI's on major indexes at/near 25.

AFTERNOON SWOON

Markets are giving up early gains as the brokers banks and small caps go red.

Strong sectors include tech, oils, trannies, retail, biotech, internets and semis while homies, airlines, metals and small caps lag.

Winners- CSC EMC AES ROK S HNZ NSM RTN DISH S JNPR SHLD BEAS MNST LBTYA LINTA VSEA CF DK FTK DRC HURN PCR TBSI WCG DSX.

Losers- LKQX SMSI CEDC TLVT GMCR ARGN SF BCSI CLB FLIR UA SO ABT LEH BDK PG CL SLB AXP SEPR ALTR XMSR CTAS LVLT CTAS.

Market internals have flipped to flat on the NAZ and +333 on the NYSE.

The NDX with about 50/50 winners to losers while the OEX is a bit better at 3/2 green to red.

IBD 100 also about 50/50.

Volatility indexes off the lows as the VIX is lower by 6.5% and the VXO up 11%.

The RUT has given up the leadership spot and is again leading lower down 1%. The tech/bio heavy NDX 100 is leading the major indexes up about .4%.

The brokers and banks are primarily red after opening strong and that does not bode well for a big rally this afternoon,

MORNING TRADE

Markets open higher with the Mid caps leading the way (+1%).

Strongest sectors include oil service, mids/small caps, trannies, brokers, tech, biotech and retail while metals, homies and reits lag.

Winners - SHLD BEAS DISH LBTYA JNPR PTEN CSC EMC AA WMB HAL BNI HIG AMGN VSEC CF FTK DRC TBSI GES DRYS WMT TEX.

Losers- LKQX PVG CEDC SMSI FLIR WBD ARGN HMSY MORN STP ABT SO PG CSCO HD MNDT DD MCHP ALTR LOGI ERIC CHRW PAYX LAMR.

Market internals are bullish with 1,000 net gainers on the NYSE and 560 net green on the NAZ.

The NDX is about 3/2 up to down while the OEX is far better at 3/1 up to down.

The IBD 100 shows about 70 up and 30 lower.

The VIX is down about 7% and trades about 10% above its 10 day SMA.

Other stuff:

Ags are hot led by DE MTW and POT;

Xchanges- generally lower;

Bio- all green;

Consumer- mainly red;

Metals - red led lower by GDX GG PAAS SSRI;

Oils - led higher by APC CAM CNQ COP DO DVN FTO HOC HP NFX PXD RIG SU;

Retail - mixed with COH CROX DECK GES KSS SHLD TGT higher and BBBY COST HD PVH UA WFMI lower;

Tech - generally green led by AAPL AMZN HPQ KLAC RIMM and YHOO;

Up volume about 2x down volume;

PRE MARKETS

Futures are indicating a higher open after swooning after the cash markets closed on Friday. The difference between cash and futures - the swoon (8 ES Points)- not dumb traders in New York or Chicago. European markets also trading higher today along with higher crude.

The RUT was strong all day Friday signaling it may have hit bottom a hair under 74 last Monday. It has climbed to about $79.5 in the pre market and has been the strongest major market index since hitting bottom.

One stock mentioned in Barrons this weekend LTR. A stock I used to own and will look to average back into as it is down about 25% from its recent highs.

Other news:

Gapping up - CAAS BX NITE CLWT GILT AVGN BEAS VCLK GS CTSH AKAM AAPL ISRG WYNN GRMN AMGN.

Gapping down- LEND BZH GOLD SAP ASX FNM ALU STM RTP QGEN INTU IACI PCAR.