Telling Day In The Market
GDP results came in at 5.7% (this will be revised lower when nobody is paying attention just like last quarter), yet the market still couldn’t hang on to its 100+ gain (Dow).
The Dow closed down 53 points and ended the week at 10,067. The S&P closed down 10 points to 1073. The Nasdaq closed down 32 points to 2147.
Today saw a huge drop in one of the market leaders of 2009, Apple Inc. (AAPL). This is a perfect example of how a stock can drop even when the company is clicking and hitting on all cylinders. Remember, stocks are emotional vehicles. Earlier this week, Apple reported a blow out quarter with massive growth in their earnings. The company continues to dominate in many of its product divisions. Then, we saw Apple debut its iPad (terrible name). While many are quick to criticize the iPad, it is definitely an awesome product. The $499 starting price was also a huge winner. No matter, the stock has had its run it looks like.
Apple (AAPL) closed the day at $192.
I heard Jim Cramer tell his viewers on Mad Money last night “I don’t like this market” – his view is that people are looking for a reason to sell. I actually agree with him, but I do like this market. For me, it’s starting to make more sense, and I love being able to trade the short side and actually make money.
Shorts I’m holding over the weekend: SPG, BC, M, COF and a few others that I’ve been holding for months
I’m also eyeing Philip Morris Int’l (PM) as it drops. Hoping it drops more so I can pick up some shares in the low 40’s. Patience is key though. We’ve had a giant move up, and just started correcting.