In the early going, it didn't look like Apple (AAPL) was going to be able to lead the broad market higher. The Russell 2000 (IWM) hit another new 12-month low, and over 1400 individual stocks also hit the new low mark.
News hit that JPMorgan (JPM) and Fed member Kashkari are now predicting that the Fed will likely pause in its rate hikes at some point in the spring or summer to better evaluate how well they are working. Previously the consensus view was that there would be a hike at every meeting, but the market likes the idea of a slower pace.
This is just speculation, and anything can happen months from now, but the good news is that Jerome Powell set forth a worst-case scenario this week, and now the market has the opportunity to rally as the possibility of less aggressive measures are considered.
Keep in mind that there are often short-covering rallies on Friday after a poor week, and there is no question that this was a very poor one for the market
I'm very anxious to do some substantial buying of my favorite names, but the technical setup just isn't there yet. There is always a temptation to buy at the lows in hopes of catching the exact bottom, but the less risky approach is to wait for some strength and then use the low point as a place to set some stops.
I added some to the position in Arlo Technologies (ARLO) and Alto Ingredients (ALTO) , which both have very favorable fundamentals in my view, but my cash levels are very high, and I won't do more buying until there is more sustained strength.
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