Monday, July 21, 2008

What's your conviction?

Wow, take a look at the AH drops of AAPL, SNDK, AXP, and TXN, all well over 10% on pretty heavy volumes, and together, they are sending one loud and clear message: consumers are crapping their pants. I could imagine that many of you probably feel missed-out last week's dramatic rally and are anxiously waiting for a pullback so that you get in from the long side, it sure looks like that you will get exactly that tomorrow. So the questions I have for you all is that if you have the conviction of the bottom and the balls to buy the pullback? Please take a stab on the survey on the left side of this post.

If you ask me, FA wise, the bottom is not in yet, but TA wise, a tradeble bottom could be in once NASDAQ follows DOW/SP500 to successfully test its Jan/Mar'08 lows, which may well happen in coming days.

I have to say that AAPL's outlook surprised me a bit here, I would not be shocked if it tests a key support around 140 tomorrow morning, which would at least a good DT long setup.

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