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Sequesters, fiscal cliffs and Europe; and we’re still alive. I hope by now you’ve tuned out the financial media, because they wont ever make you money.
Equities ended February on a negative note as the S&P 500 settled with a slim loss of 0.1%. The key averages saw some morning indecision, but late afternoon buying pushed the benchmark index to session highs before the index surrendered its gains.
The S&P is about 15 handles from recent closing highs.. The bears think we are at the top, but even the bulls don’t expect more than a move to 1550, so caution is warranted. You don’t want to be the guy being a pig for that last 20 points. I have been scaling out and raising stops as we drift higher, so stay nimble.
AAPL looks ready to collapse on its daily chart and GOOG is getting a little extended, so if they start to pull back, it may be the spark that the Nasdaq needs to start selling off. A break of 437 is probably a good short for a quick 7 points to the 430 level. There is no doubt in my mind that GOOG is the new tech favorite and much of the AAPL proceeds have been going to GOOG.
The P&L has been updated and we start the new month tomorrow. Here is my prediction for March. We see a sell off for the next couple of weeks, then the performance chasing funds bid the market up to finish the first quarter. The crystal ball is on the fritz but that makes sense to me.
See you all tomorrow.