By James Langton

(March 8 – 13:00 ET) – Markets are negative this morning, but the downside momentum seems to be limited at this point. In Toronto, traders are relieved just to be trading again after yesterday’s tech brownout on the TSE.

Today the action is back and the TSE 300 is down 56 points to 9,369 on volume of 126 million shares. The market internals are negative. Decliners are outstripping advancers 13:9. Down volume is ahead of the buying by about 5:3.

Ten of the TSE’s 14 subgroups are down, led by paper stocks and pipelines. Technology, particularly software, and tobacco firms are also on the downside. Only miners are up notably. Real estate and golds made slight gains.

The transports are very strong, up more than 5%, thanks to impressive gains in Bombardier. The Quebec-based firm is up more than 6% on heavy volume. No news from the firm, but National Bank Financial crossed a huge 4.4 million-share block this morning and has been buying it actively along with Bunting Warburg, and the odd cross from Newcrest and others.

The downside is led by technology’s heavy hitters, including JDS Uniphase, Research in Motion, Certicom, Open Text and Sierra Wireless. The move follows a general selloff in puffed up tech stocks worldwide. Some of the tech selloff is feeding an ongoing tech rotation too, bringing gains to Informission, Ballard Power, Cognicase and Clearnet. Biotechs, such as Angiotech Pharmaceuticals and QLT Phototherapeutics are also up.

Troubled Cinar announced that its financial liability to fraud or mismanagement will be limited to about US$86 million. Grocer Sobeys Inc is reporting third-quarter earnings per share of 33¢, compared with $1.02 in the quarter last year. Leroux Steel has turned it around, however, reporting first quarter earnings of 53¢ per share, up from 4¢ last year.

The small caps, which were up earlier today, are turning negative at noon. The CDNX is down 10 points to 4,214 on very heavy volume of 70.5 million shares. The CDNX’s energy stocks are up and techs are down. Miners remain flat. Savanna Resources Ltd is the day’s hottest trade, up 15% on 3.2 million shares.

In New York volatility has been the watchword. Stocks started the day with moderate gains, turned negative and at lunchtime are demonstrating divergence. Techs were sliding and cyclicals started bouncing back. The Dow is up 66 points so far today to 9,865. Nasdaq is down 28 points to 4,819. The S&P has added seven points to 1,363.