Yesterday's "we must rally for rallying sake" gap and run, pushed both Goldman Sachs (GS) and Apple (AAPL) above key resistance levels. Apple is the dominant animal in the widely traded QQQQs, hence the rally in December without Apple's participation was very interesting. While sentiment readings and the "giddy" factor on CNBC is off the charts, as a bull you definitely like to see these type of moves in what are considered bellweathers. Apple especially now has a wonderful sideways base to work off of.
With that said, I still think at these levels of euphoria we are now becoming increasingly prone to a blow off type of correction - perhaps Friday's "surprising" employment figures will provide the incentive for the last surge higher before we finally have an inkling of correction. I would begin building some hedges against long positions starting next Monday (afternoon of course since we almost ALWAYS gap up on Monday mornings) or Tuesday. Next week will mark the 6th week of non stop rallying (have we even had more than one 0.5%+ down day?); generally a good time to expect some weakness to begin.
Tuesday, January 4, 2011
Both Goldman Sachs (GS) and Apple (AAPL) Show Breakout Potential
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows