Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


Headwinds Could Force a Breather for Bulls

By  +Follow June 13, 2014 12:24PM
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.

Signup for our daily newsletter and get our best articles emailed right to you!

Results for aapl
Stock Relay
26 Oct 14 00:35:05
$ISRG Dividend Click Here: http://t.co/dPJJs4IqDM Also See: $PLPC $AAPL $ATRM $ISM ~
26 Oct 14 00:23:23
RT @StockTwits: IPHONE GROWTH 2011: 72.3 million units sold 2012: 125.04 million 2013: 150.26 million 2014: 169.22 million -> http://t.co…
26 Oct 14 00:19:49
RT @alphatrends: VIDEO http://t.co/wACRkx7VL4 Stock Mkt Analysis for Wk Ending 10/24/14 $SPY $AAPL $IBB $TLT $QQQ $IWM $BABA $XLF $NFLX $IBM
forex book
26 Oct 14 00:18:18
♥ @MyOrgone ♥ @MyOrgone :Don't trade $AAPL stock!! You can turn $666 into one million with THIS Apple!... http://t.co/paTQ6yTveY
♥ @MyOrgone ♥
26 Oct 14 00:11:31
Don't trade $AAPL stock!! You can turn $666 into one million with THIS Apple!!! http://t.co/zb3UZNiUN6 $SPY @CNBC
Paul W. Mahon
26 Oct 14 00:04:12
RT @SeekingAlpha: Are XLK And Its Holdings Overpriced? http://t.co/m0iuzkLTDj $AAPL #APPLE $CSCO $FB $GOOG $GOOGL $IBM $INTC $MSFT $T $VZ $…
25 Oct 14 23:59:17
$AAPL iPad Air 2 Review: Why Apple's New Tablet Destroys The Competition http://t.co/pXUNAJSTdJ
25 Oct 14 23:48:05
http://t.co/v31H5i6SbE <<-- Register free! I am excited for Tim Sykes special tutorial webinar! $FB $SPY $AAPL #timsykes
Chaitanya Panday
25 Oct 14 23:34:52
RT @philiped: Hindustan Times: India’s initial supply of iPhone 6/6+ sold out in 72 hours. But it was only 55,000 units. http://t.co/97JvpF…
Chayton Falke
25 Oct 14 23:30:03
We use #data to prove our claims. There's nothing more #powerful than having #generated #newsletters, and the data that #evolved. $AAPL
♥ @MyOrgone ♥
25 Oct 14 23:11:38
Stop trading $AAPL stock!!! Turn $666 into one million with THIS Apple!! http://t.co/zb3UZNiUN6 @CNBC $QQQ
25 Oct 14 23:00:43
.@LatinoGop We need to convince @Tim_Cook to add #Hispanic #Latino #Blatino or #Black onto $AAPL #Apple BoD, and kick out @AlGore. #UniteRed
25 Oct 14 22:57:40
It's on financial services culture but it could overshadow $AAPL if he says something on QE @boes_: Bill Dudley in 5 min
25 Oct 14 22:56:53
.@tim_cook @gruber It would be wise to have @CondoleezzaRice or @Amex Ken Chenault on $AAPL #Apple BoD!!! Far better than @AlGore!!!
25 Oct 14 22:54:01
#BREAKING: Apple $AAPL Q4 Revenues $42.1B inline with expectations
Chasing Stars
25 Oct 14 22:47:55
$NTEK Last Price Click Here: http://t.co/UA96fHlAlb Also See: $AAPL $FNV.TO $MTVX $VTI ~
25 Oct 14 22:47:11
.@tim_cook @gruber Woke up w/ nagging question: Y no #Black, #Hispanic or #Blatino on $AAPL #Apple Board? Yet, only #Jewish, #White, #Asian?
25 Oct 14 22:31:44
25 Oct 14 22:18:32
CVS joins Rite Aid in blocking Apple Pay in "CurrentC" plan to collect more customer data http://t.co/gy97y8tSnq #AppleInsider $AAPL
25 Oct 14 22:12:14
When iPhones Ring, the Economy Listens - via @YahooFinance $AAPL http://t.co/uObaTtc6h8
♥ @MyOrgone ♥
25 Oct 14 22:11:37
Dump $AAPL stock! Turn $666 into one million with THIS Apple instead!! http://t.co/zb3UZNiUN6 $QQQ @CNBC
25 Oct 14 22:00:04
Short trade, $AAPL TARGET 1 Price: 96.53 for a typical pullback with 1st level of support @ $101.70
Joe Attrux
25 Oct 14 21:59:54
RT @SeekingAlpha: Are XLK And Its Holdings Overpriced? http://t.co/m0iuzkLTDj $AAPL #APPLE $CSCO $FB $GOOG $GOOGL $IBM $INTC $MSFT $T $VZ $…
Richard Morgan
25 Oct 14 21:58:30
RT @gingi0: @JustinWolfers That’s why I try to offset my iPhone purchases with $AAPL stock.
Quantpost Cnsmr Good
25 Oct 14 21:55:49
$AAPL News: "Are XLK And Its Holdings Overpriced? $AAPL #APPLE $CSCO $FB $GOOG …" http://t.co/jElxwgK6hY Board view: https://t.co/UKnOp0aS6J
Seeking Alpha
25 Oct 14 21:55:47
Are XLK And Its Holdings Overpriced? http://t.co/m0iuzkLTDj $AAPL #APPLE $CSCO $FB $GOOG $GOOGL $IBM $INTC $MSFT $T $VZ $XLK
Cave Island Ventures
25 Oct 14 21:53:19
Apple's PT raised by Sanford C. Bernstein to $110.00. http://t.co/hkLIgecHRv $AAPL #AAPL via @RatingsNetwork
Ravi Romo
25 Oct 14 21:49:35
RT @MacHashNews: T-Mobile CEO John Legere Tweetstorms some clarity into the Apple SIM debate http://t.co/F2essPDIK8 #9to5Mac $AAPL
Adam W. Hoffman
25 Oct 14 21:46:14
Emotions:Are people readin financials? sold this pos when P/E ttm hit 300x value. LOL $GPRO went public when it didnt need to| #SCAM $AAPL
forex book
25 Oct 14 21:44:49
♥ @MyOrgone ♥ @MyOrgone :Dump $AAPL stock!! You can turn $666 into one million with THIS Apple instead... http://t.co/paTQ6yTveY
Adam W. Hoffman
25 Oct 14 21:44:17
Technicals: Umm $GPRO is diving Mon. Price target EOY $50 - Only because #winteriscoming Look for bounces at key s/v areas 63 and (55) $AAPL
1Media Studio
25 Oct 14 21:44:16
RT @counternotions: Oct 23, 2001: iPod released, $AAPL at $1.30 (split-adjusted) Oct 23, 2014: $AAPL hits $105.05 (all-time high) (Some…
25 Oct 14 21:39:28
RT @NYCONLY: Monday Oct 27th Huge Momentum Alert UP TO 1000% Gain Potential Follow @DamnGoodTrader $MYEC $ALKM $IBIO $FNMA $AAPL http://t.c…
I ❤ NYC!
25 Oct 14 21:32:20
RT @NYCONLY: Monday Oct 27th Huge Momentum Alert UP TO 1000% Gain Potential Follow @DamnGoodTrader $MYEC $ALKM $IBIO $FNMA $AAPL http://t.c…
♥ @MyOrgone ♥
25 Oct 14 21:26:31
Dump $AAPL stock!! You can turn $666 into one million with THIS Apple instead! http://t.co/zb3UZNiUN6 $SPY @CNBC
25 Oct 14 21:26:10
RT @NYCONLY: Monday Oct 27th Huge Momentum Alert UP TO 1000% Gain Potential Follow @DamnGoodTrader $MYEC $ALKM $IBIO $FNMA $AAPL http://t.c…
25 Oct 14 21:25:34
#OSXYosemite is probably the best #OSX I have ever used. Brilliant #APPLE $AAPL
25 Oct 14 21:22:42
RT @NYCONLY: Monday Oct 27th Huge Momentum Alert UP TO 1000% Gain Potential Follow @DamnGoodTrader $MYEC $ALKM $IBIO $FNMA $AAPL http://t.c…
25 Oct 14 21:21:02
Monday Oct 27th Huge Momentum Alert UP TO 1000% Gain Potential Follow @DamnGoodTrader $MYEC $ALKM $IBIO $FNMA $AAPL http://t.co/qK4ImfNALT
25 Oct 14 21:18:06
T-Mobile CEO John Legere Tweetstorms some clarity into the Apple SIM debate http://t.co/F2essPDIK8 #9to5Mac $AAPL
25 Oct 14 21:09:59
"@MathIsBack: $AAPL So if I buy a bag of chips at 7-11 with apple pay, apple gets 30 cents out of the dollar I spent? Is that correct?" NO
Bull Stocks
25 Oct 14 21:06:44
RT @The_Analyst: iPad=toy, iPhone=necessity RT @BenedictEvans: iPhone doing just fine, iPad... not so much. http://t.co/D34LUreQIL $AAPL
Brian Scantland
25 Oct 14 21:03:08
Everything in this 1991 @RadioShack advertisement now available in a single iPhone || clockspeed tech || $AAPL $RSH http://t.co/vwlo3RDWK9
xain ahmed
25 Oct 14 21:02:01
The Best Sports apps on the Internets http://t.co/aWGRHPdwgi #ipad #iphone #nba #nfl #mlb $aapl
The Turtle Follower
25 Oct 14 21:00:16
WEEKEND UPDATE VIDEO: Entering $CB, Review of $AAPL $COST $ROST $HD $LB and more! #stocks #trading #investing http://t.co/aMjZL7F0da
Investors Hangout
25 Oct 14 20:58:11
$MJNA E.P.S. Click Here: http://t.co/74DQEy301n Also See: $TBT $AAPL $ATPAQ $TZA ~
♥ @MyOrgone ♥
25 Oct 14 20:56:32
Why trade $AAPL stock! Turn $666 into $1 million with THIS Apple! http://t.co/zb3UZNiUN6 $SPY @CNBC
Tom Kusiak
25 Oct 14 20:54:15
RT @ValaAfshar: 1st & 2nd gen immigrants founded the largest US tech companies: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EM…
25 Oct 14 20:46:11
RT @ValaAfshar: 1st & 2nd gen immigrants founded the largest US tech companies: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EM…
Wendell Bell
25 Oct 14 20:40:38
RT @ValaAfshar: 1st & 2nd gen immigrants founded the largest US tech companies: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EM…
By  +Follow June 13, 2014 12:24PM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

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