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Minyanville's T3 Morning Market Call: German High Court Approves Euro Bailout, Facebook Jumps on Zuckerberg Comments


By the time the day is over, expect Apple to wrest back the headlines from Facebook.

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Futures have a positive tone this morning as the German high court approves participation in the European bailout fund, with conditions. Yesterday the Dow led the rally, which continues to broaden, a positive sign. Each day we get new opportunities to find new patterns for cash flow as both macro investors and technical traders continue to get rewarded.

Equities are proving they are far from dead as 401Ks and 529 plans are finally performing. My 2012 target of 1450-1470 in the S&P might be conservative!

While the big news today will come from Apple (AAPL), which is expected to unveil its new iPhone 5 during a 1 p.m. ET announcement, Facebook (FB) is stealing its thunder pre-market.

In his first public comments since the company's disastrous IPO, Facebook founder and CEO Mark Zuckerberg spoke at TechCrunch's Disrupt Conference about the company's recent stock performance and long-term prospects. Most notably, Zuckerberg said that the company is focused on its mobile platform because it "is the future," and the company believes that developing a phone is the wrong strategy for the company. He reassured investors that he most certainly does care about shareholders, specifically in regards to creating value for them in the long term. Investors apparently liked what he had to say last night, as the stock is up 6% in the pre-market.

Technically, Facebook had been acting better since last week, when Zuckerberg announced he would not be selling any of his IPO shares after his lock-up expired. An additional entry could have come yesterday when the stock broke above the $19.42 pivot.

But by the time the day is over, expect Apple to wrest back the headlines from Facebook. The iPhone 5 has been highly anticipated for more than a year, dating back to before the iPhone 4S. Despite the lack of any truly groundbreaking features in the 4S (unless you call Siri "groundbreaking"), consumers gobbled up that phone after its release in record numbers. With what is expected to be a redesign, among other significant upgrades, the iPhone 5 is expected to provide as much as a half-point boost to US GDP! The stock saw a big run-up in the last month and a half, but has stalled out in the last two days. Let's see if that pullback simply gave us a better entry opportunity on the day of the announcement.

Two stocks, PACCAR (PCAR) and Vanguard Natural Resources (VNR), are down about 5% in the pre-market. Paccar's slide is due to a warning over a slowdown in industry orders in North America for new trucks that could lead to a sequential 20% drop in production versus the second quarter. Vanguard began a public offering of six million units of stock in an effort to pay down debt.

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Scott Redler is long AAPL, VMW, FB. Short SPY.
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