Courtesy of Scott Martindale, Sabrient Systems and Gradient Analytics
Stocks are finally showing a willingness to ease up on their bull run, if for no other reasons than to do some much-needed technical consolidation and to digest the latest news. You might say they are pausing to take in the view from these lofty heights–especially the Nasdaq, which hasn’t seen this level since 2000…when it was moving rapidly in the other direction.
Volume remains light, and a real breakout attempt likely will need broader participation to get follow-through. Still, the Fed’s actions have rendered undesirable any alternatives to stocks, and Warren Buffett continues to extol the virtues of stocks over cash, bonds, or gold. So stock market bulls definitely have friends in high places for the time being.
Among the 10 U.S. sector iShares, economically-sensitive Industrial (IYJ) was hit the hardest on Wednesday, although Basic Materials (IYM) is the biggest loser for the week so far. Energy (IYE) along with defensive sectors Consumer Goods (IYK) and Healthcare (IYH) have shown relative strength this week.
Have you taken a bite of Apple (AAPL) yet? It seems that the juggernaut’s legions of followers and investors are growing in leaps and bounds, and loyalists just can’t get enough of anything and everything the company produces. On Wednesday, AAPL reached above $526 before falling precipitously starting around mid-day. Its recent strength might have been driven by rumors about an imminent unveiling of an iPad 3 that supports 4G technology, which would be huge. Not everyone is aware that Apple’s products employ only 3G technology, and anyone who has experienced 4G speed knows there is an incredible difference. The stock is still rated StrongBuy in Sabrient’s quantitative ratings algorithm, with a near-perfect Growth score of 99.
On Wednesday, China expressed its commitment to invest in Europe. Also, economic reports were good, with strong industrial production, New York manufacturing, and homebuilder confidence numbers. However, the FOMC minutes from its late-January meeting showed only a few members favoring further quantitative easing. But the biggest downer was talk that the EU might postpone the next round of aid to Greece on doubts that the country will have the fortitude to follow through on its promised austerity measures.
To be sure, the masses in Greece are throwing quite a tantrum over what they are being asked to endure, and they are convinced that destruction and…
