Poor Action Abounds
Although the indices are showing green, market action continues to look quite poor. The opening gap up was sold again, and the market has been trending downward through the first hour of trading. Among the stocks that had gapped up on earnings, quite a few of the stocks have now reversed hard. SolarWinds (SWI) and PulteGroup (PHM) are good examples of how the early chasers were burned again.
The action in Apple (AAPL) is particularly interesting. So far there is no anticipatory buying, although it is obvious that expectations are low. The sentiment has shifted completely -- no longer does the stock act like it can do no wrong. Apple has consistently beat expectations, and it is going to be interesting to see how that plays out. If the pattern of the quarter holds, the stock will gap up on its earnings report tomorrow and then sell off....130 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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