kaltbaum premarket

Very important you do not get caught up in AAPL. It is only meaningful right now to its share of an index or to the suppliers whose stocks will probably be affected. If you told me 6 months ago, that AAPL would be doing this, I would have said market was screwed…but RIGHT NOW, market couldn’t care less. In fact, S&P not even budging this morning while the NDX is whacked. I emailed the people of the NDX a few times in recent months telling them 1 stock should not make up over 15% of the index. They didn’t listen.

 

I would like to say as long as central banks continue to print money, market is fine. At least, that’s how it has been since lows of 09. And now they are printing in numbers I cannot even fathom. All that money is finding its way into the market. And now, if markets stay strong, I gather more cash will come off the sidelines.

 

More importantly, I have seen nothing in the way of distribution. In spite of what I consider suspect earning’s reports, things remain in gear. DD announced a 54% drop in earnings…and the stock went up…because they said things may be getting better.

 

Back to AAPL…studies have shown that when a big leader finally tops, on average, they drop over 70%. Time will tell on AAPL…just realize that it has followed a bear market template since the top…and now the bad news starts coming out.

 

No additions this morning. ..BUT now adding NFLX to watchlist. For the life of me, I dont know why it is up so much this morning but thinking the 20% short position on the stock is helping it. Other gaps this morning are ALTR,MLNX,VAR on the downside. FFIV,AVT on the upside…and then a lot of small moves off earnings.