MORNING MELT

Markets open very ugly on the heels of the big down day in China- the SPX -13, NAZ -29 and the DJIA -98.

Strongest sectors- bonds, junk, drugs and biotech while gaming, energy, oil service, emerging markets and semis lag.

NYSE- 2000 net losers.

NAZ- 1400 net losers.

NDX- 4 GREEN;

SPX 26 GREEN;

VIX- up 9% at 26.95.

TRIN- 2.69 with down volume about 20x the up.

RSI 2- at/near 10 on most major indexes and that is typically a signal to start scaling long in bull markets- and a bull market generally defined buy the slope of the major moving averages- all to the North.

So this fish is going to be scaling in to some longer term swing trades as the probabilities are with the longs for now-

What is actually surprising is that the dollar has barely moved- an expectation of a move higher - not happening.

Doug Kass with his top call.

Bove on the hysteria.

Is this a deep pocket for Madoff scandal.

Donald Duck buying THOR.

Finally, some late night battles.