logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


Headwinds Could Force a Breather for Bulls

By  +Follow June 13, 2014 12:24PM
Share:
Tickers Mentioned:

STOCK MARKET PULLBACK, correction in stocks, bull market ending, apple stock split, energy stocks iraq, oil stocks iraqThe sell in May period started off stronger than expected, but growing uncertainty in the market could push stocks lower as investors may look to take profits ahead of further vulnerability. In this week's interview with Toni Turner of TrendStar Trading Group, we discuss the prospects of a pullback and areas to watch during the growing tension in the geopolitical realm.

EQ: The broader market had been enjoying a nice run higher over the past month, but has since cooled off. Should we expect an extended breather here?

Turner: We’ve been talking about a breather for a long time, and it appears as though it may finally be here. If we look at geopolitical events, the market has not had any headwinds over the last few months. Now with Iraq and the Middle East once again in the news, oil prices involved, combined with rising interest rates looming on the horizon and second quarter earnings season starting next month, I believe the market might take  these uncertainties and use them as a good time to take some profits off the table.

EQ: One stock that was enjoying the run-up was Apple (AAPL) , whose stock split took effect this week. The stock is up over 25 percent since the announcement was made in late April. The 7-1 split was assumed to have a psychological effect on traders to push it to $100 a share post-split. Do you see that playing out?

Turner: I know that Apple was scheduled by its stockholders to go to $100 post-split. For a number of reasons, that event may be put on hold at the present by even bigger world players than Apple, meaning geopolitical events.

On a split-adjusted basis, Apple touched $100 in October 2012, and it may fulfill the market’s wish of touching that big number again, but I suspect that it may have to absorb some of the fear now arising over the unrest in Iraq and the Middle East before that happens.

Technically speaking, Apple experienced a failed breakout this past Tuesday. It broke out to $95 and change and is now pulling back. Its last move up was at a very steep angle and even the mighty Apple may have to give back some ground before it can start climbing again.

EQ: The iShares Russell 2000 (IWM) re-entered positive territory recently. We've talked about the weakness in the small-cap space in our recent interviews, but is this encouraging for bulls?

Turner: This is absolutely encouraging to bulls, but in its recent pop, I saw a lot of short covering involved. That was very evident.

With that said, it is once again trading above its 50 and 200-day moving averages. I’ll be interested to see if it can hold above $112 in the face of what’s going on and with low volume. If not, then we’re facing a negative scenario again.

EQ: With all this uncertainty in the market, what sectors or industry groups are you looking at right now?

Turner: Right now, as one could imagine, I’m watching energy, although most of those stocks and ETFs are overbought at the moment. We can look at the big ETFs like the Energy Select Sector SPDR ETF (XLE) , SPDR S&P Oil & Gas Exploration & Production ETF (XOP) , and iShares US Oil Equipment&Services (IEZ) , and look  for a pullback, with one eye on the news. .

Also, I’m watching the Guggenheim Solar (TAN) right now. We can usually count on solar stocks moving higher when it appears that oil stocks and the energy stocks  gain traction. So solar usually is a me-too play.

EQ: Are you using the Utilities Select Sector SPDR ETF (XLU) as your fear gauge during this time?

Turner: The XLU came down very definitely as the market was rising. In the last run up, Utilities stocks were not glamorous enough for the broader market, and with the prospect of rising interest rates, that always takes some of the mojo for Utilities stocks away.

Now, however, they could become attractive again if this uncertainty continues.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for aapl
Alex Berenson
31 Aug 15 11:55:28
@John_Hempton @tangentstyle @WallStCynic @hblodget in hardware (of all kinds) it seems untrue. Think $BBRY v $AAPL - or $DELL v $AAPL.
Ross Gerber
31 Aug 15 11:54:47
@delamacorra Wrote a few things about that at @forbes you can see it here http://t.co/8xhgCeHKIn $aapl
StockBoardAsset
31 Aug 15 11:54:33
$AAPL .764 PT Achieved http://t.co/BaH0IcD5MR
Ross Gerber
31 Aug 15 11:53:52
#Apple round up for xmas. #Applewatch #Applemusic #AppleTV #Iphone6s #Ipadpro #Applepay And who knows about upgrades to the #Mac $aapl
MacHash
31 Aug 15 11:52:12
Apple continues enterprise push with new Cisco partnership, will… http://t.co/dS0NOxUovh #AppleInsider $AAPL http://t.co/7CtFocRbQr
FinBuzz
31 Aug 15 11:51:29
Track trending assets in 1 watchlist $AAPL $BAC $RGZPF $USDCAD Greece + stocks http://t.co/2kTxE3eREV http://t.co/Rb6nQP3Wtw
AndreA
31 Aug 15 11:50:48
$AAPL $NDX $NQ_F $QQQ $TQQQ $NFLX $GOOG Another Massive Explosion Rocks China http://t.co/gDCOuWBHZA
Tech Insider
31 Aug 15 11:50:21
Apple And Cisco Ink Nebulous Enterprise Partnership:  Apple playing nicely with enterprise compan... http://t.co/KMAHm5Unwx #Apple $AAPL
Gehrig Leary
31 Aug 15 11:50:15
Apple and Cisco to join forces. Collaborate on corporate networks, @WebEx, video technology $AAPL $CSCO
Info CA
31 Aug 15 11:48:27
AAPL: Predictive Charts for $SPY, $GLD, $FXCM, $USO, $SCO, $CVX, $MU, $AAPL, $GOOG, $FB: How does artificial intellig http://t.co/dk8G0Lzpil
Larry (Lars) Chaffin
31 Aug 15 11:48:23
Did Apple get 80% list price? "@CNBCnow: Apple, Cisco announce partnership where Cisco will optimize networks for iOS users. • $AAPL $CSCO
StockExpert
31 Aug 15 11:47:45
$DWTI WOW DOWN -150$ IN 3 DAYS HOLLY COW $FB $AAPL $GOOG $MSFT $INTC $TWTR $BAC $C $JPM $UWTI $OIL $XOM $WMT $BP $COP http://t.co/kPsFLoJWWY
FI Trading Apple
31 Aug 15 11:47:01
Apple to bet on a new technology 'as profound' as smartphone $AAPL #aapl #News #Apple http://t.co/ozPCoBzVdh http://t.co/7nj96lJMsi
Larry (Lars) Chaffin
31 Aug 15 11:46:05
RT @plutonetworks: Move to android fast. "@CNBCnow: Apple, Cisco announce partnership where Cisco will optimize networks for iOS users. •…
Thudder & Wicks
31 Aug 15 11:45:39
Former $AAPL Supplier $GTAT to Cut 40% of Workforce http://t.co/UJCNWcVA7n
Cutlass
31 Aug 15 11:45:12
RT @investorsCloud: $500 in 6 Weekly Option Puts : $MCD $HD $NKE $DIS $SPY $AAPL - http://t.co/mXapNoF3h8
Brian
31 Aug 15 11:44:46
RT @Accellion: Apple Watch number two in #wearables worldwide - Silicon Valley Business Journal http://t.co/yXiSJOHJrD $AAPL $FIT http://t.…
Spread The Trend
31 Aug 15 11:44:41
Just noticing that $NDX is getting rocked today and it's not because of the $SOX or $AAPL these are weak though $AMZN $GOOGL $FB $NFLX
The Stock Professor
31 Aug 15 11:44:22
Apple to bet on a new technology 'as profound' as smartphone?: http://t.co/Tti670PCPF $AAPL $GOOG $PCLN $K
investorsCloud
31 Aug 15 11:43:58
$500 in 6 Weekly Option Puts : $MCD $HD $NKE $DIS $SPY $AAPL - http://t.co/mXapNoF3h8
FinBuzz
31 Aug 15 11:43:05
Screen through high rated articles at once for US Tech Kings $AAPL $GOOG $FB http://t.co/l3Lv2AAjzE http://t.co/PUbFTbHzVW
Thudder & Wicks
31 Aug 15 11:42:45
$AAPL Teams Up With $CSCO, Expanding Corporate-Sales Push http://t.co/tGIQkAyzUd
Options Answers
31 Aug 15 11:42:42
RT @goldluvr: $GOOG $GOOGL $AAPL So We’ve Got That Going For Us….. - Update from Option Millionaires - Stock Options Chatroom St... http://…
PrivateCapBlogger
31 Aug 15 11:42:08
The New Apple TV 4 Could Rival Xbox One And PlayStation 4 $AAPL http://t.co/IfM1Hmzoxs
The Cardiac Kid
31 Aug 15 11:41:14
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/84F6MDKvXC
Эрдэнэбаатар
31 Aug 15 11:41:13
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/ON6iq3PBom
TI
31 Aug 15 11:41:13
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/KGpVA1rZZW
ADVFN France
31 Aug 15 11:41:12
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/9qnXiQ1ccI
Solo traders
31 Aug 15 11:41:11
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/M9s2UK4mz4
Artiom Barski
31 Aug 15 11:41:10
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/XeGYg3HgYY
Live Stock News
31 Aug 15 11:41:07
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/xyv1zTUDHq
matt collom
31 Aug 15 11:41:07
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/t5QMPirnZk
Kevin Orukel
31 Aug 15 11:41:05
$AAPL - Apple, Cisco Unveil Business Partnership http://t.co/nQdn6bPcXJ
plutonetworks
31 Aug 15 11:40:43
Move to android fast. "@CNBCnow: Apple, Cisco announce partnership where Cisco will optimize networks for iOS users. • $AAPL $CSCO"
Sleek Money
31 Aug 15 11:40:18
Analysts’ Updated EPS Estimates for August, 31st $AAPL, ABM, AGU, CAM, DGI, EXC, EXPD, FMX, GEF, HYGS http://t.co/JoV3ApfylJ
Ari Levy
31 Aug 15 11:40:10
So is Apple now going to teach me how to use this thing? $AAPL $CSCO http://t.co/Q21mUpzgIJ
Jim Neal
31 Aug 15 11:39:48
Former Apple Supplier GT Advanced to Cut 40% of Workforce - WSJ $AAPL http://t.co/LdKaZ0Ki7x
US Banking News
31 Aug 15 11:39:40
Analysts’ Updated EPS Estimates for August, 31st $AAPL, ABM, AGU, CAM, DGI, EXC, EXPD, FMX, GEF, HYGS http://t.co/mVolUpeBwR
Seeking Alpha Alerts
31 Aug 15 11:38:22
@FabioCimi87 $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:22
@ShaunDalyMD $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:21
@Vegastrader66 $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:21
@spdjoe $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:20
@FPRO62 $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:20
@chris01_77 $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:20
@bigpilot3 $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:19
@hguerra29 $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:19
@jensen418 $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:19
@simysimycoco $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:19
@LLDavydov $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
Seeking Alpha Alerts
31 Aug 15 11:38:18
@JabaPeltokangas $AAPL Apple forms alliance with Cisco; new Apple TV reportedly emphasizes Siri/gaming http://t.co/GRsgi2d9vO
				
				
By  +Follow June 13, 2014 12:24PM
Share:

Comments

 

blog comments powered by Disqus

 Today's Must Reads

Welcome to Equities.com's Small-Cap Throwdown


These Analysts Called Apple's (AAPL) Collapse, Here's What They're Saying Now

7 Dow Stocks Worth Owning and a Lot that Aren't

Sprint Turnaround Has Begun


Saving the

Small-Cap Market

 

Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN