High Heeled Traders

Apple is High in Sugar

February 19, 2015

The Apple of my eye just went on to it’s record high as well, ending $128.75 . AAPL seems unstoppable, but I think it is due for a little rest. It’s taking some step back from its intra-day highs, it is getting more volatile. There is a divergence now among the major indices (only NASDAQ ended green today). See if not for the positive sentiment from FOMC minutes, AAPL was mostly in profit-taking situation pushing it into negative territory several times in the day. I’d be careful for any positions to the upside, to take profit with tight trailing stops. George Soros reported that they exited AAPL and moved out to Asian and European stocks (bargain hunting possibly). Nonetheless, with continuing innovative products, Apple Pay and Apple Watch, (I surely hope they make the Apple Car) … Also from reviewing Dr. Van Tharp’s Peak Performance course I’ve been finding out about the chemical balance that supports our investing / trading performance — get this, too much sugar gives a boost in energy but absorbed quickly by musles and liver and eventually leaving no energy source for the brain. Best to consume complex carbs found in whole grains, fresh fruits and vegetables that provide steady flow that provides more stamina and mental energy. Apple is high in sugar, the good kind that lasts. BONUS : Rich and Generous companies – AAPL one of 10

US stocks flirting with record highs. Professional fund managers, including David Einhorn are saying prices are getting stretched. S&P500 which reached a record Tuesday (and ended just a bit shy from that at Wednesday’s session) is trading 18.5 times reported earnings. That’s a bit above the 17 number representing “fair” valuation already. (Article here)

I heed this “warning” for sure, but know that the earnings calendar is not yet done (with retailers still about to report), more dovish talk from US Federal Reserve would also serve more sugar. Last night’s FOMC Meeting Minutes had definitely given comfort that rates are on hold for a while yet — Globally – where else do we see growth ? Very few places, you could say the global climate even darkened than last year – with Japan, China, Australia, Canada, EU cutting rates or setting accommodative policies, but that means they are all nervous about growth. Oil prices, back up to $50 but still no promising demand growth. Wages are also far from being able to support more robust spending — all those wage increases can afford are donuts and not yet a whole cake. Article here.

It’s like New York Fashion Week got it all in one trend — it’s back to BLACK. As in dark, and foreboding! Check out the trends here. Nonetheless, you can’t say they are boring, with all those frilly add-ons and interesting angles perking up the eye, it’s the same in the financial market with those rate cut announcements and possibly on-hold rates for the US for longer. Enjoy the sugar…

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