THE OPEN

Markets are continuing on their downward trajectory and my purchase of the EWA on Friday isn't looking to good. The DJIA -90, NAZ -21 and SPX -10. No one besides myself and the folks at Barrons seem to think the markets are cheap and should be bought.

Strongest sectors- insurance, brokers, gaming, retail, utils, drugs and banks while airlines, emerging markets, real estate, oil service and semis act the worst.

Key stocks- 7 out of 40 in the green led by DECK BG TIF POT NYX LVS and AAPL while MA INTC MTW AMZN MGM BIDU CAT VMW ICE and CELG act the worst.

Market internals pretty awful with 1,200 net losers on the NYSE and 900 net red on the NAZ.

NDX-20 GREEN;

OEX-20 GREEN;

IBD 100-15 GREEN;

WINNERS- GTI GME POT TISI TEF OTEX OXPS EP MRK NXY ALL LTD EMC HON DELL FLEX LEAP JOYG LBTYA SIAL MRVL TLAB SPLS;

LOSERS- INTC CHKP AMZN FAST INFY ADBE COF SLB USB BHI CAT DOW VZ FSTR SLT NOV TKC MR PCLN HDB;

VIX-higher by 3% -no fear- 7% above the 10 SMA;

Down Volume 3X Up volume;

Markets looking pretty horrible with next area of support at 1,450 area on the SPX- Not sure what is going to turn this tanker around but for now its not pretty.

One glimmer of light is again the action in the financials- they are lower but outperforming so far this AM so maybe just maybe they will turn the boat around.