Apple, Citi Looking Pretty; Google Still Stumbling
Search behemoth is actually (gasp!) advertising-dependent.
Greetings from New York, where I'm actually going to take the next hour to do yoga. Why? Because my portfolio is lean, but I'm not. And if you let yourself fall to pieces, the financial crisis wins.
Here's what I'm thinking, very quickly, as I see the screaming greeny open:
- Today's over-used word: Capitulation. I've heard it a dozen times, and it isn't even 10 a.m. yet. While I'm a happy-go-lucky guy and delighted to embrace the enthusiasm, I'm thinking 2 things: 1) 1000 pts off the Dow lows of Friday is sort of late to call "bottom," in terms of time if not price. 2) The gaps higher give you nice risk/ reward set-ups for trades in terms of both stops lower and resistance higher. For instance:
- Apple (AAPL) showed lovely action on Friday (as noted by Dennis Gartman and others), but has shot over $100 already this morning. If we get a morning fade (and we should), a long spec at $100 with a stop $5 lower seems like a decent shot. Overhead resistance? Our old support "friend" at $120.
- Citi (C) could be sort of pretty for a trade near the $14 area, with a stop a dollar underneath. I'll be letting my systems do the walking on that trade, even as I downward-dog.
- What don't I dig? How about Google (GOOG), rallying today but still shaking off the realization over the last month that Google is, in fact, an ad-selling concern. Just like CBS (CBS), Viacom (VIA) and the New York Times (NYT).
- Back after I stretch it out, Minyans. Given how the world has been turning, whatever relaxation I get from the exercise will be undone by what I find on my screens when I return. It's a chance worth taking.
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