Investors poured out of technology stocks Wednesday, spooked by disappointing results from Apple Inc. and Microsoft Corp.
The retreat pushed the Nasdaq down 36.35 points, to 5171.77 and added to a rotten mood as the rout in commodities including gold and oil continued. We don’t do much with gold on this site, but it acts horribly and the dollar hasn’t even rallied back to recent highs yet. Wait until that happens.
Swings in Apple’s shares can spark big moves in the U.S. stock indexes. As the largest company by market capitalization in the S&P 500 and Nasdaq, Apple has an outsize impact on the two market-cap-weighted indexes.
I’m sure the bulls will be back in Apple as soon as the dust settles and it did a good job of holding uptrend support.
The bears are still jaw boning about the lousy breadth in this market and how these moves are being made by only a few select companies. That is true, and it needs to be watched, but the bears don’t seem to have any real firepower to get this market lower.
I lightened up on another 1/4 PRTA for amost a $16 profit today. We haven’t even held this one for two weeks.
I also added ANTH to the P&L today and it went on to pop 7%. Biotech is still the place to be. Some day they will peel back the onion on this sector, but for now, they still provide the most bullish and exciting setups.
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See you in the morning.