Decoupling at the Open

     A favorite theory of the bulls, and a popular buzz word on Wall Street, has been that world markets are now decoupling.  The idea is that the United States is no longer the main engine of growth.  If the US slows, the rest of the world would pick up the slack and global demand would remain strong.  This idea has been a major force for a few months and has allowed select stocks to push higher.  After all, if you own a hot technology stock (i.e. Apple (AAPL)) or a stock that relies on heady economic growth (i.e. Dryships (DRYS) or Potash (POT)), decoupling is your friend.  Let the credit crisis spread, seek safety in strong names and weather the storm.

     At the open, we may be witnessing a new form of decoupling.  With Europe and the futures relatively unchanged, one should expect a benign open.  While most stocks reflect this, the tech leaders are lagging.  Currently, RIMM is lower over $4, BIDU nearly $4 and AAPL has reversed early gains.  For the bears to reclaim control of the market, they must first kill the leaders.  By circling around the tech sector, they are attempting to do so.

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