Minyanville's T3 Daily Recap: Markets Mixed, Apple Finds Support at 50-Day Moving Average

By T3Live.com  OCT 02, 2012 5:05 PM

Biotech stocks Amgen and Gilead both surged today.


US markets finished mixed again Tuesday, avoiding losses across the board thanks to a late-afternoon rally. The Dow dropped 0.24%, but the Nasdaq and the S&P eked out gains of 0.21% and 0.09%, respectively. European headlines continue to weigh down world markets amid reports that a Spanish aid request is not close.

Health care stocks were the top performers on the day, especially biotech stocks Amgen (NASDAQ:AMGN) and Gilead (NASDAQ:GILD), which surged 1.5% and 2.5%, respectively. The telecom sector was also strong amid M&A speculation, with MetroPCS (NYSE:PCS) the big winner, up 17.8%. 

Apple (NASDAQ:AAPL), after early morning weakness, faded most of the day until the last hour. We had been targeting the 50-day moving average as a likely destination for a pull-in, and Apple kissed perfectly off that level today. Apple actually closed back above yesterday's low, and could bounce back up into its 21-day moving average in the short-term. Today's high and low are your new short-term references to trade against.

Google (NASDAQ:GOOG) continues to hold up best among the tech leaders, and only fell down into its 8-day moving average for the first time in more than two weeks. The fact that Google held that 8-day moving average level can keep the speed of the rally intact, but don't get greedy after a big run over the last few months.

Scott Redler is long FB, AAPL. Short SPY.