Sellers took to AAPL stock once again as the stock fell more than one percent weighing on the NASDAQ and the rest of the technology sector. Leading stocks on the other hand acted very well suggesting the market simply was digesting gains before making a move to the upside. The stock market has come well off the lows following the crisis in Japan and it is time for the market to take a breather. Today’s sideways action and support show the underlying strength and healthy action. Despite your opinion of where this market should be going all signs are pointing to more highs are ahead.
In the short-term are we overbought, yes, but that does not in absolute terms confirm we have to pullback or continue to stay sideways. Healthy action would include a few two to three day minor pullbacks, but this market is anything but normal. Follow the trend and let the action dictate your moves.
Tomorrow’s market will get to digest the ISM Non-Manufacturing data as well as the FOMC meeting minutes in the afternoon. As of late we have heard a few Federal Reserve Presidents speak about ending QEII early or on time and even raising interest rates. Perhaps we’ll get a clue on whether or not the FOMC has actually discussed this amongst themselves or are we seeing the beginnings of it. While our actions will be based upon the price movement of stocks and the overall market, but it will still be intersting to see if the Central Bank has even had the internal discussion put on record.
The big question on the growth managers now will be can AAPL stock bounce back and regain its leading status form. Heavy volume distribution certainly has the stock on edge, but is it just about to turn into a new MSFT stock? GOOG stock has turned into a laggard the question is will AAPL stock join them in the laggard camp? For now, it appears AAPL is looking to become a laggard stock. One does have to think, is the market foreshadowing a Steve Jobs health crisis? God holds the answer and hopefully this is just a blip in the radar.
Cut your losses!
