|The Apple drag|
|Written by L.A. Little|
|Friday, 16 November 2012 08:43|
In all my years of trading I have never seen one stock has so much influence. I have seen groups of stocks, but not one. Apple is unique in many ways and this is yet just another of its oddities. This market will not lift until Apple quits tugging it lower. What will that take? Your guess is as good as mine but common sense says there has to be some value at some price. With a 27% haircut at this juncture, you have to think that time is coming near.
As for the markets, continued pressure this morning but this is getting close to some sort of reversal area as pressure without relief can only last so long. You are starting to see some stocks that just won't go down anymore. That's one sign of a potential turn. You are also seeing price points where the deepest of stops are being triggered. That is also a sign that things are nearing a completion. It's those that won't sell; say the won't sell; and finally sell that put bottoms into place that stick at least for a while.
The backdrop to all of this though is continued issues in the Middle East, recession in Europe, positives out of China and so-so's here in the use economically while the leaders begin to meet on the 'fiscal cliff' issues. But end the end, Apple has to quit going down. Until it does, don't expect this market to turn.