When we “spoke” last week, the market looked grim. Very grim! But, the charts hinted we were near a bottom. Or, at least near credible support.
And sure enough, after a dismal Monday, the market turned right around. And turned around big, moving up 4% from Tuesday onward.
However, the market gives and the market takes, and now I think the market has moved back to overbought. Translation: be careful on the long side right now!
Now, if you want to be a bit more aggressive than “careful,” then you might want to take a stab at betting on a market retreat. To do that, I like playing the reverse of the QQQ: QID. Keep in mind it moves 2x the QQQ, so take a position half your normal size.
And naturally it’d be remiss of me not to mention Steve Jobs and Apple (NASDAQ:AAPL). You’ve already read tons I’m sure, so I’ll leave you with this: he was our generation’s Edison. R.I.P. Mr. Jobs.
As for AAPL, though, we have to be objective, and the story isn’t bright. I love the company, but the stock looks like it’s about to break lower support. If so, I’d look to buy in the low 300s.