Friday's Fantastic Finish – Russell All-Time High, S&P Catching Up - InvestingChannel

Friday’s Fantastic Finish – Russell All-Time High, S&P Catching Up

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

881!

Right on our target from yesterday’s post and last week’s predictions and, of course, 880 has been right on our Big Chart, plain as day for years so don’t act all surprised when we hit it

Ah, but for the Nasdaq to cross over 3,150, it’s going to need AAPL to move up or at least stop dragging it down. AAPL is down 20% from $660 since October (3.5 months) and that’s cost the Nasdaq 4% but the Nasdaq is flat at 3,100 and now over that line a bit. Add 4% to 3,100 and we’re at 3,224 and almost at our 10% line at 3,300 so all it’s going to take is an AAPL recovery and the Nasdaq is off to the races.

Unfortunately, I had to warn our Members against betting on an APPL recovery coming soon (we expect it eventually), saying: I don’t think AAPL will gap up on China as it’s kind of expected, unless there is a special deal, like I outlined yesterday. I think it’s dangerous to fantasize about a sudden turn up in AAPL even when they were $85 and I was screaming for people to buy them, it took 7 months (October ’08 April ’09) for them to get back over $100 and that was down from $200 more than 50%, so it’s not like nobody had seen better value in AAPL earlier they had been over $150 for about a year and then spent 7 months at a 50%+ discount. Now they fell from $600 (I wouldn’t count the brief spike to $700) to $500 for about 3 months maybe they still go to $400 and maybe it lasts another 6 months you shouldn’t care, you should be thrilled to OWN AAPL at that price. But if you keep betting for a short-term pop, you can go broke while you wait

That was in the context of discussing our “One Trade” on AAPL and Originally posted here…

Posted in: Markets, Trading Ideas