Another above average volume sell off on the back of a lousy jobs number has the bears excited. Beyond the initial bounce this morning, traders did not want to do much over the weekend. Even the VIX was not jumpy on a down 100pt Dow day. Is the VIX capped as the possibility of quantitative easing remains on the table? On the bearish side the market was not able to bounce much on better news out of Greece and renewed talk about dragging on QE2. As uncertainty around QE2, USA debt threshold and Europe debt crisis continue to simmer; it’s probably going to be a choppy market. It would be a good idea to prepare a shopping list of long and short ideas to take advantage of oversold and overbought conditions. As pointed out by Jeff on ETF Rewind Pro, the historical volatility had being on the rise and plays more into mean reversion strategies. I also ran into an interesting article below regarding the smart phone and Ipad revolution.
What got my attention was the mentioning of Tim Cook which I had glimpsed from my previous job. He is basically the guy who called the shots when it comes to contract manufacturing for AAPL. With Steve Jobs ailing, he is also now the interim CEO along with his normal role of COO. When he speaks I pay extra attention. Here are his internal projections at AAPL. In addition, my friend says work had being very busy at his electronic parts supply company and some of the parts do go into the Ipad. Yes there may be a economic soft patch down the road and more correction may be looming on the horizon but the demand is there for select technology companies. .
