3. The transports have been destroyed. There is no sponsorship whatsoever, and this group goes down pretty much every day. It is frightening to people because the losses are happening so quickly.
4. Health care's been rocked by the new Medicare rules. If you look at United Health (UNH - Get Report) and Humana (HUM - Get Report), you will see how the stress has just caused the group to buckle. The change in the law that severely limits Medigap, the staple of Humana, is on display today writ large. I would exempt the drug stocks, but they have gigantic strong-dollar exposure -- worrisome. I would say that biotech works, and that's why Gilead's (GILD - Get Report) been such a strong equity. I think that will continue, but we have to recognize that the group's been strong and Gilead's had a great run -- one that can continue, but a lot of the easy money has been made.
5. Retail is under a level of pressure I have never seen, with balance sheets stretched beyond belief. It is amazing to me how many retailers simply may not make it. The downgrade of JCPenney (JCP - Get Report) today is emblematic of that. The Limited (LTD) balance sheet, the Macy's (M - Get Report) balance sheet ... they are frightening. The bankruptcies here could be monumental.
6. The real estate investment trusts, once thought of as staples, are in free fall because they need financing to stay in business, and there is no financing for them. None. So as the debt needs to be rolled over, the market is downright inhospitable. Even the best of these, Simon Properties (SPG - Get Report), with the best retailers, and Vornado (VNO - Get Report), with the best commercial tenants, can't withstand this onslaught.7. Tech's under pressure from a million sides. When the best of the best -- Hewlett-Packard (HPQ - Get Report) -- tells people things have slowed dramatically, and the semiconductor industry puts out some semiconductor equipment data that's so dismal it will take your breath away, you know the group can't rally.