Dr. Kris'  Instablog

2:50 pm ET: The major averages blew out of the gate on the open but have been sliding since. The Dow Transports (DTX) are leading the decline by a significant margin but that's really not so surprising considering that the slowing global economy is starting to have an impact on the bottom lines of transportation companies. Should the DTX continue to break down, its movement will eventually have a turn around effect on the rest of the market because if goods aren't being shipped they're also not being bought (well, duh) meaning that this global slowdown will eventually have an impact on everyone's bottom line (except for Apple, of course).

Speaking of Apple (AAPL), it's interesting to note that with all of the frenzy surrounding the release of the new iPhone5 that the stock hasn't done better. Comparing it to Google (GOOG), Apple's stock has risen 23% while Google's has risen 31% since mid-June. Who would have suspected that?

Sector rotation continues: Homebuilders, media, telecom, biotech, and health care continues to attract investor interest while high-end retail (Tiffany (TIF) and Coach (COH)) and utilities are seeing weakness. Today the utilities etf (XLU) broke $36 major support in intraday trading; a close below that would likely presage further selling down to $34.

Have a good weekend! Go UCLA Bruins!!!

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