As I indicated last night in the market direction comment after the markets closed on Tuesday, I would have expected a sell-off the start the day. But as I indicated yesterday that right now it isn’t so much about how high can the market move but where are the lows. Even this morning the selling is a combination of investors’ concern over the fiscal cliff since Obama is re-elected but Congress is controlled by Republicans and European woes as Greece votes again on austerity measures while it seems that most of the country’s populace are on strike.
Asian and European countries were higher overnight but started to sell as the US Stock futures began to fall earlier this morning.
Apple Stock Falls To Support
Apple Stock continues to take it on the chin this morning as the decline continues under analysts comments that “perhaps” the stock has peaked. Other analysts wonder if they are losing their grip on the tablet market.
Whatever the case there really is limited support in Apple Stock until it gets down to the $515 to $530 area. This is where strong support is for Apple Stock. If that breaks there isn’t a lot of support until about $450 and even there it is weak. This level at $515 to $530 is where best support presently remains. The Shark strategy has had me holding puts in Apple Stock since Oct 17 when the Shark Options Trading Strategy advised that the stock was turning back down.
Market Direction Morning After Summary
Investors have to be confounded this morning. They know that the Federal Reserve under President Obama will remain accommodative which will provide liquidity and they have no intention of seeing the stock market collapse in the second term. At the same time with the Republicans holding the House and the Democrats the Senate, many wonder if the log jam so prevalent in the first four years of the President’s administration will continue.
Right now a lot of investors are voting with their feet and raising cash levels. But since I always have cash levels available, I took a few new Put Selling positions this morning in Microsoft Stock and in XOM Stock.
Based on the market timing technical indicators from the weekend, I am still expecting that the selling will only take the markets back to the most recent lows and then investors will reassess as will I.