By James Langton

(August 15 – 13:00 ET) – The TSE 300 topped the 11,000 mark for the first time ever this morning, although the market is backing off earlier highs and it remains to be seen if it will close above the new high watermark. Nevertheless, at midday the TSE 300 is up 7.5 points to 11,006.

Volume is absolutely massive at 101.2 million shares, although much of that is penny stock trading. The volume is almost 4:1 in favour of buyers, although its only about 2:1 if you drop out the day’s big trader. Decliners are outpacing advancers about 9:8.

Ten of the TSE’s groups are up, led by cable stocks, there’s also some buying in oils, tobacco and auto parts, but most of the gains are very modest. There’s more convincing weakness in biotechs and engineering firms. Financials, too, are sliding after yesterday’s heady jumps.

Heritage Concepts is the story of the day, up 18¢ to 84¢ on more than 41 million shares. No news, but lots of hype and frenzied trading in the stock.

Nortel Networks is up slightly on its proposed acquisition of Sonoma. But that isn’t doing much to assuage tech issues, which are generally weak. Celestica, Tundra and Janna Systems are up notably. But JDS Uniphase, Exfo Electro, Delrina, Ballard Power and QLT are all down as techs weaken in the U.S.

Other active traders include Renaissance, up 1.25%. Aber Resources has gained 9% as it gets closer to full approval to build its diamond mine in the NWT. There’s also strength in Seagram, Microcell, Magna and Dreco.

ATS Automated Tooling is off 15%, backing off recent highs after announcing its earnings. TD Bank is leading the financials back down.

In the U.S., profit-taking is the order of the day. Investors have knocked the Dow back 108 points to 11,068. The Nasdaq composite is down eight to 3,841. The S&P 500 is off six points to 1,485.

Yesterday’s strong gainers, Home Depot and JP Morgan, are hitting the Dow as the market gyrates waiting for the next Fed move. All the retailers and brokers that popped yesterday are sliding today. Semiconductors are one area of strength, led by Intel and Rambus. Linux stocks are also rallying thanks to the hype surrounding LinuxWorld.

The CDNX is following the U.S., down seven points to 3,336. Volume is light again at 9.9 million shares. Techs are strong, but miners and oils are weak. Venstone One Capital is the hot trader, up 70% to 26¢ on more than 2 million shares.