With so many indices, ETFs and stocks breaking their respective 50 day moving averages to the downside lately (IWM, QQQ, AAPL, CMG, BAC, etcetcetc) can anything, anyone, or any company save the day? Well its doubtful that any one can, but maybe a few biggies can.
Todays action was buoyed early by good earnings from MMM and T. Then IBM announced some news intraday that helped to further support the broad market. The company increased it dividend by $0.10 which is 13% AND authorized a $7bb buyback! Read the full IBM press release story here.
But the big story came after the close when AAPL reported and blew away the streets estimates - (insert fundamental analyst joke here). The stock closed near $560 but after the report shares jumped sharply to near $590 before I turned off my systems. Tomorrow morning could turn out to be a feeding frenzy as all those institutions who were selling the stock from its highs 2 weeks ago try to get back in to get their exposure back up to where they want it to be. With AAPL stock back over its 50day moving average on such a move, it may run into some resistance near the psychological $600 area but if the broad market improves a bit and some people look to put risk back on then $600 may just be a springboard for further gains.
So to answer the question, it is possible that a few heavyweights can save the broad market. The question now is will there be some other event to throw a wrench into the gears of that plan and send the broad market lower to complete the correction, or will the correction be truncated. The next few days, and weeks, will hopefully bring some clarity.
No comments:
Post a Comment