MORNING UPDATE

Equity markets are trading lower yet again as the bulls are having a difficult time catching a break of late. SPX -3.75, NAZ -13 and the DJIA -22.

Sector strength - metals, nat gas, oil service, ags, junk and drugs while airlines, gaming, retail, internets and defense lags.

NYSE-885 net losers;

NAZ- 900 net losers;

SPX- 137 green;

NDX- 17 green;

TRIN- .53 with up and down volume about equal-

VIX- flattish an trading about 5% above the SMA 10.

RSI 2 levels in buy territory on most major indexes as they trade near 10 except for the RUT which is out performing of late.

Gold- trading up 10 at 1140 while the dollar is down a tad at 76.46.

I am scaling in to some QQQQ /QLD and some GDX- also may add to DGP which I have been in and out of lately.

The Brazilian small caps also look interesting BRF-