Apple & Biotech Ruled the Roost

Some fed members getting ready for the June meeting

Today was a very interesting market day on a few fronts. First off, biotech did well, as PFE made a bid for ANAC , all cash, at a 55% premium to Friday’s close. Yes, we were stopped on ANAC a couple of weeks ago. Barrons also had a bullish cover over the weekend on REGN, which popped 22 bucks or 6%. ANAC and REGN are members of IBB so it helped. It also helped the Nasdaq.

But what really helped the Nazzy was the news that Buffet took a 9% stake in AAPL. This popped the stock out of free fall as it popped 3.7%.

I think the Buffet move is interesting. I think it says a lot about where AAPL stands today. Buffet buys value stocks. He has also said on many occasions that “I dont buy technology because I don’t understand it”. Interesting. Is AAPL not a technology stock anymore? I would argue that its not. Just like AMZN isn’t tech, its a retail/consumer discretionary play.

I think its fair to say that AAPL has jumped the shark when it comes to being disruptive.  I mean how many different shapes and sizes can you make a phone? Do you realize we’ve been waiting five years for AAPL’s next big thing? We got an iWatch.

Anyway, its pays a dividend and has gobs of cash. A typical Buffet play. Next.

There’s always a buyer for every seller though.  Over the last quarter, Carl Icahn, David Tepper and Leon Cooperman have all dumped their AAPL position in its entirety. Buffet scooped it up. Weak hands to strong hands, its the way of the market.

Although biotech had a good day, the volume was low and a bunch of the move was due to ANAC and REGN. I still see bear flags on the daily chart and maintain my bearish stance for now.  I would need a close over 270 on IBB for me to change my mind.


In other news, retail had a dead cat bounce of about 0.8% today.

None of the new stocks triggered today. The week is off to a bullish start, lets see if the bulls can press here.

See you in the morning.



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