The nice price action started Tuesday for the market as prices lifted. Everyone is waiting for the pullback now, because they always do arrive. The question is always the severity of such a pullback. Nothing goes in a straight line, ever, so looking over your shoulder right now probably isn’t the worst thing to do. Maybe the $SPX pulls back to its 10 day moving average, that takes us back down to around the 1440 level. Not the end of the world by any stretch, and I guarantee you there will be buyers lined up around the block to buy the pullback. Pullbacks should be shallow and very buyable.
The market has shown us two things over the past few weeks, it doesn’t care about Washington, and it doesn’t care about what $AAPL does. There is such underlying strength in this tape that AAPL has become a side show. Both have been put on mute, which is a good thing. The chart of $AAPL started telling us a story back in late September, those that paid attention avoided a body bag or actually made money shorting the name.
We wasted our time watching Bill Ackman and Carl Icahn throw a bitchy hissy fit on CNBC Friday. Some marveled at what great TV it was, frankly it was a disgrace and exemplified why people hate and distrust Wall Street. Ackman strikes me as sneaky, and Icahn just a mean old man. I’d rather watch Honey Boo Boo. Enough of those two. I’m not long or short $HLF ,but I’m sure pre-teen Herbalife distributors in Borneo are legit though. Who am I to judge?
I think the financials, $XLF still have miles to go before they rest, so I plan to get deeply long on any pullbacks. Energy, $XLE, $OIH is finally getting strong bids in all different segments of the space, and from my perch, technology will soon go higher on a sustained basis. Hard to believe $GOOG is sexy again and $AAPL isn’t, but technology will go much higher anyway.
I will post some set ups later.
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