AAPL did not have a good session after reporting earnings Tuesday evening. Small cap stocks were hit the worst, but the Dow managed to squeak out a gain. The lackluster type of action is indicative of the market we have seen the last few months and we continue to remain stuck. Volume was up across the board and the NASDAQ gets a day of distribution. After today we are now back in the danger zone where a sell-off is much more likely. A day like Monday would go a long way, but we are going to need to see some serious follow-through.
Crude oil took a tumble today, but not before erasing early morning losses. Weekly inventories briefly sent the commodity into positive territory only to see prices fall back down. We have seen crude oil struggle with staying above $50 a barrel. Perhaps another rumor regarding an OPEC meeting is in order.
We have some hedges going on the books tomorrow after today’s action. Sure, the Dow closed positive. Unfortunately, small cap stocks are in danger of leading this market into a correction. Nothing is guaranteed and we have seen this market battle back from worse. For now, we are in limbo with risks piling up.
Stay the course.
