The market dropped modestly Tuesday, digesting recent gains after an acceleration out of the uptrend over the last two weeks. Most big cap tech leaders traded lower during the session today as they rest after relative strength in recent days, highlighted by Netflix, Inc. (NFLX) and Baidu.com, Inc. (BIDU). Apple Inc. (AAPL), however, was relatively strong and looks like an attractive long into the close as it closed on the highs of the day just under all-time highs. It feels AAPL will be higher when we wake up tomorrow.
The fertilizer group was among the weakest in the market, with PotashCorp/Saskatchewan (POT) dropping 3.2% and The Mosaic Company (MOS) losing 4.6%. On the flip side, United States Steel Corporation (X) held its 3% gap up after a price upgrade to $75 at Goldman.
It’s amazing how spoiled the bulls have become. This rally is resilient and unrelenting, and any down day in the market, no matter how insignificant, feels peculiar. All traders need a little perspective. Earnings season has been good. Economic data is showing improvement, albeit slow and steady. New companies are innovating and taking leadership of this market. All in all, the market is healthy and moving well, a great combination for both investors and active traders. Continue to trade the price action and don’t trade with a bias.
Disclosure: Scott is long AAPL, GOOG