THE OPEN

Markets are trading lower as I type with the DJIA down 34, NAZ -10 and SPX -5. RUT/Small cap value out performing and in the black. Question number 1- lets see if 1,360 can hold on SPX.

Strongest sectors- homies, semis, retail, biotech and metals while internets, telecom, MOO, brokers and real estate lag.

Key stocks generally in the red with VMW MGM KLAC INTC TIF PG SMH MCD IBB green and GOOG GRMN BIDU AMZN ICE AAPL CME MER RIMM GS- all red;

WINNERS- HOLX APOL SBUX SHLD PETM MNST CCU TGT TXN INTC AMGN EMC WMT JST ANSS FCSX MTL VIVO HOS SLT;

LOSERS- DRYS PDA ENS KWK BABY SID TITN FWLT GOOG SNDK GRMN BIDU DISH AMZN PAYX AAPL MER COF EP ATI GM AA;

NYSE- 60 net losers;

NAZ- 180 net winners;

NDX- 40 GREEN;

OEX-25 GREEN;

IBD- 40 GREEN;

VIX- FLAT;

TRIN- 1.33

Down volume a bit more than Up volume;

Finally some talk on bubblevision about the recent lousy performance of AAPL and GOOG- and yes very ugly as GOOG is down $35 and trading near $450 and down 34.5% on the year;

Also talking about whether the markets can rally with out the financials. Well breaking news for CNBC- the NAZ/NDX are down about 14% on the year while the XLF is down about 6%. My point, look for the NAZ/NDX to start to out perform on the reversion to the mean trade.