AMAZON (AMZN) was down $60 yesterday but up $76 this morning.

GOOGLE (GOOGL) down $43 as they missed.

APPLE (AAPL) was up $6 in the aftermarket yesterday but is now down $1 off their numbers.

Other gappers to the upside are DATA, DECK, ATHN, SNE.

Gappers to the downside are PI, AMGN, MAT, PI, V, XOM

We have been telling you there was a chance the complexion was changing. Futures are down today as rates tick even higher. We do not rationalize. We play it as we see it. Just remember…THE DOW IS UP 8,000 POINTS SINCE THE ELECTION. Will need to see some more cards come out of the deck but at the very least, it is getting tougher.

We do make note that FINANCIALS remain very strong as margins expand. If the FINANCIALS remain strong, it is going to be tough to take the market down but if the FINANCIALS come in even as rates rise, we will then know the correction (of unknown price and time) will gain some teeth. Again, CORRECTIONS DO HAPPEN. We know to some this is blasphemy as the masses have gotten used to an easy glide path up…but CORRECTIONS DO HAPPEN. It does not have to mean the end of the world is at hand. It just means markets do go down every now and then.

Shorter-term, anything is possible. Just remember we were down big on the open yesterday and was up by the close. Anything is possible on a daily basis. But if the internal deterioration continues, there is only one way this will go.

Be careful of the talk the market has to continue up because of a stronger economy. We are hearing that we may even see a 5% 1st quarter. Markets are about supply and demand. No matter what, if demand is used up, supply is the only thing that is left. Markets will go down, even in a strong economy.

Lastly, we were very disappointed that the president did not mention the debt and the deficits during his state of the union. As we have reported to you, today, over $2 billion will be added to our debt. Tomorrow, over $2 billion, the next day and the next day and the next day…and because of the continuing upward slope of government spending, deficits going forward are headed back up towards $1 trillion/year…which means we are headed to $3 billion each day. Yet, the president and his party have remained silent. We have news for you, when all is said and done, the massive debt and deficits will 1000% come back to bite everyone in the arse! We guarandamntee you!