Apple Gains On MAC Price Cuts, Oil & Stocks Start The Correction

July 22nd, 2009

Wednesday, oh Wednesday…not much to speak about really. The main stories today surrounded APPLE, OIL, and the BANKS. Apple came out earlier this morning with some news that the price cuts for the MAC pc’s were boosting sales in that area which sent AAPL up nearly 3.5% today. On the whole, if you look at the chart – which is what you are supposed to be doing – you can see that AAPL has reach a VERY strong resistance level going back all the way to 2007. My opinion, this baby is heading lower over the next month or so. Sorry Mac fans out there, but this is strictly business – nothing personal.

 

aapl

 

As for OIL, you can see that the nice little run it’s had is coming quickly to an end. Now, whether we see a meaningful correction is still unknown. But this area in GREEN below on the Oil Index is very alarming for longs. This is why I suggested DUG as a good long trade today.

 

oix

 

Now the S&P. Clearly this whole 955 region has been tough – notice the sideways trading here. If we break below 952 – which is where we found support today – then I think 935-ish is going to come very very fast. As I’ve said for a week now, waiting for a better entry point is worth it. If you want to get long, just wait a day or two and get in at a much lower price.

 

spx22

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