More shades of 2008 this morning, as S&P futures contracts jumped on a general assurance from China overnight that they will “help with the European crisis”. (The Chinese people with an average income of $7,000 a year would love to bail out one of the wealthiest, most over-paid regions in the world, no doubt). I understand the reason for such whimsical dreams of course. But banking life savings on them is surely just as misguided this time as it was coming into the last global recession when the then equally naive SWF (Sovereign Wealth Fund) rescue hopes were moving markets in big swings day-to-day. Meanwhile the Japanese economy contracted twice as much as expected last quarter and Italy is officially back in recession (4th largest economy in the Euro). No one is even talking about all the toxic waste in the Spanish banking system yet. But hey why look at relevant facts and figures when we can frolic another day in nonsense and denial. See more in this clip.
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And on that note, Apple is not only the most “important” stock in the market. Apple IS the market. Shades of 2008 when just a half-dozen or so stocks, lead by POT, drove the TSX to its all-time high. Potash companies now cutting production.
Thats funny! I shorted AAPL just this very morning as it was showing signs of a climax run (for now though). This tip off? Close friends were asking me to get them ‘2 shares’….yeah, right.
The proper time to have bought AAPL lately was around 429-ish. Look at the chart. It was dead quiet the last trading day of 2011. Now it is SUCH AN OBVIOUS WINNER. And the smart money loaded up on leveraged trading positions, kept on buying/holding it to squeeze it up into a steepletop formation, and today it reversed. Badly. Apple Computer is not the market.
Just like Cisco, Cisco, Cisco….Put CISCO in the DOW in 2000.
Yeah, right. Bubble is more like it.
Wasn’t cheering Apple. Just noting the lack of market breadth, like we had on the TSX in first half of ’08. See this: http://www.zerohedge.com/news/apple-responsible-90-intraday-nasdapple-gain
If you watch/listen/read the FN, it’s Apple and, well, yeah, everyone else.