The simple reason why the market is going down is that there is no DEMAND. If there is no DEMAND for something (stock in any company) then the prices will fall to levels where people, investors, funds, etc., think it is a bargain.

Right now the market is skittery. Much of the gains made over the past 7 months have been wiped out to initial purchase levels. Technically the market looks for an even deeper correction, especially in the tech sector. The retrace could quite possibly be another year 2000 disaster. If unsure what to do, I would liquidate and remain CASH at this point (or wait for small bounce then bail). Stay in CASH until the market stabilizes (read into it several months).

As far as the airline sector, to me it still looks lower. If you are an options player I would probably short CALLS (short term) or go long PUTS for longer term gains, especially with UAUA, LCC, CAL. Some of the regionals look dead, MESA especially. I wouldn't be surprised if MESA falls to a price under $1.00 which would force a delisting from NASDAQ.

For sectors to buy I would scout around in the Natural Gas Market, Alternative Energy sectors, and quite possibly GOLD, BUT only IF the sectors begins an up swing.