The hated rally continues to march on as futures point higher this morning. Apple (AAPL) continues its march, and looks poised to hit $700 in the near future. When AAPL goes, it hardly gives anyone a sensible way to enter and runs farther than you think it would. In these situations, the parabolic type move usually outlasts the people who try to stubbornly short it.
Select stocks are consolidating at the top ends of trading ranges and making 2-3 day follow through moves, which is exactly what we look for in this type of tape. That isn’t to say spread yourself thin, but pay attention to where the money is rotating. Banks, for example, woke up yesterday and could get some continuation for a couple days. Also, the metals woke up after being out of play, perhaps now with a catalyst this week in the form of Fed minutes tomorrow.
We are getting rest, and the rally isn’t fast and furious enough to push the oscillator to extremely overbought levels. Follow the trend until it breaks.
By Marc Sperling
Disclosure: Marc Sperling is long JPM, GS, AAPL, EXPE, GLD, DRYS, DRYS calls, ANTH, BAC, AFFY, TSPT, SLV calls, SLV, C, CMG, EXPE calls, GS calls, AIG calls, GNK, LULU calls, LVS, TUMI, CMG calls, LULU, AAPL calls, AGQ, MA, FSLR calls.