This market is confusing as hell but there's one thing you can bet your mortgage on, whatever happens is happening in the last hour of trading. I mean it's like the whole day we're just gearing up for 3PM so the HFT's can drag us one way or the other. We ended the day up 270+ on the DOW and even the NASDAQ got dragged kicking and screaming into the green. Does this rally mean the worst is over? Maybe,but it's too soon to tell and I'm not devoting a bunch of capital until I know for sure. Apple (AAPL) was the story today after JPMorgan reported that the gang in Cupertino has cut it's iPad parts orders by 25% for Q4, the first time JPMorgan has ever observed such a cut by Apple (AAPL). After being down over 3% in the first hour of trading, Apple (AAPL) recovered and only closed down about a buck to $403. I stated earlier that if this is true, it's more telling of the economy, Europe especially, than Apple (AAPL) itself. I shorted some Fossil (FOSL) today based on it's chart and it had already started working, but the big reversal upwards at the end of the day erased those gains. I'll leave them on until I see clear direction and bail if we really start gapping up. Gold dipped below $1590 early in trading and settled in around $1597. I sold 75% of my short position in gold this morning since I had been short since $1900. I think gold sees $1500 before $1800, but it could bounce around here for a while. I'm seeing a lot of things on sale out there like Wynn Resorts (WYNN) and Baidu (BIDU) but all the technicians are saying "stay away". Admittedly all I see are broken charts, but I'm a contrarian investor, I like to buy when sentiment is most bearish and charts are most broken.
This is not a recommendation to buy or sell any securities. DAK was long AAPL, WYNN and BIDU, and short FOSL at time of publication but positions can change at anytime.
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