|It's an Apple of a Market|
|Written by L.A. Little|
|Thursday, 10 January 2013 06:35|
So much is written about Apple every single day and though I try and shy away from doing the same as there is little value add, it clearly is a very important stock because when it moves, it moves everything. This morning pre-opening it is up $13 or so and the effect is huge. The NDX is up $20 and the SPX $8. It's no coincidence that they move in tandem. Today's new de jour on Apple is Tim Cook meeting with China Mobile and maybe there being some sort of a deal brewing though nothing was announced. Rumors if you will.
As far as the markets are concerned, the technical setup is strong and the market keeps hanging up here with the consolidation pattern after two large wide price spread bars higher to end last year and start this one. That push and the following consolidation is making it hard for anyone to get any exposure on if they didn't have it already which is, as they say, how bull markets don't let you in. If the market continues to push without any real retrace, then the anxiety of missing the move to start the year really starts to kick in and that will allow a breakout by the S&P 500 which will force more money into the market and perpetuate the move higher.
Will it happen now? Don't know. Will it happen eventually? It has a reasonably good chance of doing so. All I know is that if you are leaning in any direction, it should be long.