The Debate Over Apple

 | Dec 06, 2012 | 11:03 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

Market players are fascinated by trading in Apple (AAPL) today, which bounced nicely after an early panic. Probably the most interesting thing is the debate over AAPL. True believers continue to feel the market just doesn't understand AAPL, while skeptics argue that AAPL's lifecycle has shifted and it is now a "mature" company like Microsoft (MSFT), Cisco (CSCO), Dell (DELL) and many others in the technology sector. While it may still be a good value, AAPL's hyper-growth stage is over and it is unlikely to regain the wild momentum it enjoyed earlier this year.

Outside of AAPL, the market continues to trade in chaotic and choppy fashion. Breadth is running about 1950 gainers to 2900 losers, but underlying support continues as hope of a fiscal-cliff deal keeps buyers interested.

What has been particularly challenging lately is that there is little sustained momentum. Banks lead one day and do nothing the next. If you are chasing momentum, you are seeing very little follow-through. And there is no hot theme or sector. Usually, a group or two attracts hot money looking for action. The hot money is out there, but it doesn't seem to be focused.

My inventory levels are extremely low, but I continue to have a difficult time finding much I want to accumulate. I have a few small trades and a couple of things I'm interested in longer term, like Fusion-io (FIO), but I'm not technically seeing any reason to do any aggressive buying. Lower prices would be nice, but underlying support in this market continues to be quite stubborn.

Columnist Conversations

A gravetone doji candle formed on the weekly Facebook (FB) chart. This candle is defined by a narrow opening a...
The iPath Bloomberg Sugar SubTR ETN (SGG) is pushing up towards a test of its prior rally peak at 33.94, which...
We added some call plays on Microsoft and Celgene today on the very strong price action (msft) and flow, and t...
Juniper Networks is the number three gainer in the S&P 500 today(behind Amazon/Microsoft). The stock...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.