AFTERNOON MARKETS

Markets continue to trade above the flat line but buyer beware as lots of this rally hinges on a rescue of AIG- and if it doens't happen?

NYSE market internals - very weak with 1165 net losers compared to only 200 net losers on the NAZ;

NDX/OEX- both with over half their shares in the green;

Banks, reits, financials, homies, shipping and internets higher while utils, steel, telecom, metals and techs lower;

VIX- back at the flatline- 31.5;

Crude getting close an 8 handle;

10 year note 3.39%- wacky;

WINNERS- UAUA FLWT SBUX SNDK EBAY MER WFC BAC HPQ JPM WB;

LOSERS- MS DELL ETR AES CI S AEP GS SIRI VMED MNST TLAB FMCN JAVA MSFT;

Up and down volume about equal with a TRIN of .51- so the volume is going to the winners;

All about the financials again- and AIG the dilemma again- no clue how it plays out today but I don't think the lows have been made as those LEH assets will be sold and more mark downs will likely happen leading to lower prices and probably more "issues."