If you have read this blog for a while you know that I think there are important “physiological” stocks and levels. I f they act good or bad hold or break then the market has a much better chance of following along. The Mac Daddy right now, no pun intended, is AAPL. He rallies the market does he rolls so do the indexs. It won’t last forever but right now he is in charge. The 10 point AAPL in AAPL yesterday afternoon spared us the selloff we had today. Coincidentally AAPL went down 9 points today and the market had a pretty good selloff. If you are actively trading keep him on your screens at all times, I do. With that said the levels in AAPL are 203.33 (the 50 day) and 197 (a break of last Fridays low).


What saved the market from getting really ugly today, in my opinion, oddly was GS. I don’t know if it was because Obama didn’t come out with Blankfeins’ head on a pike last night or he didn’t announce the arrest of everyone at 85 Broad St; but GS actually outperformed today on better than average volume and broke a down trend line stretching all the way back to October 14th. GS is also an important physiological name and needs to be closely monitored.

In the macro sense I am still concerned that we are headed for more weakness and the 150 day MA in the SPY (105.07). SPY 108, AAPL 197 and XLF 14 need to hold, or we will likely head lower.

The $ dollar index is now trading solidly above the 200 day MA closing at 79.12 and appears to be headed to the 81.25/.50 level a resistance area from last June

105 represented an important support level in the GLD and it snapped back from it nicely today, I suspect that the next time around it won’t fare so well and the next important support level is 100.

I continue to try and buy stocks and etf’s as they dip down through and then back up through important MA’. On the flip side I am out and probably short if they breakdown through them again. It is a tough environment right now so be nimble and don’t press.

I will be watching:

AAPL 203.33/ 197

SPY 108

XLF 14

GLD 105

$Index 81.25/78.34