TGIF

The markets opened lower this morning, following yesterday's sharp selloff in the US, which carried over into weakness in Asian markets and in Europe this morning.

But the selling dried up in the first hour of trading, and as of this post the markets are climbing back into positive territory on the day. Of course, with the VIX this high, we know we can expect a lot of intraday volatility. So nothing really matters except how we close on the day.

The concerns in Europe continue to surround sovereign debt, whether Greece can meets its fiscal debt budget, and an overall global economic slowdown.

In corporate news, HPQ reported disappointing results and its stock is getting whacked. This is weighing on the Dow Jones average. Salesforce.com (CRM) reported strong results and its stock is rallying.

The dollar is lower today, which is helping commodities. Oil prices are higher near $82.70, and gold prices have surged to new record highs above $1850.

The 10-year yield continues to languish around 2.08%; and the VIX has been bouncing around, but is currently 2% lower near 41.80, an extremely high level following yesterday's surge higher.

Trading comment: No change to our near-term strategy. If the market is trying to put in a trading bottom, it will be a process and not a one-day event. So we are still using bounces to lighten up on our equity exposure, and staying defensive by adding to index hedges. Preservation of capital remains the best course during a market downtrend.

Have a nice weekend, be safe, and rest up.