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.

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

Results for aapl
18 Sep 14 01:26:58
RT @WSJ: iPhone owners will basically end up with a new phone when they upgrade to iOS 8, writes @joannastern. http://t.co/PxZH4yQAUf $AAPL
18 Sep 14 01:25:04
Tech: $AAPL: "how much profit can we make from it?" $GOOGL: "how much better can we make it?" Musk: "how much can it change the world?"
Theodore Kekstadt
18 Sep 14 01:15:59
$AAPL stock content, charts, analysis, & more - Free - http://t.co/GxDFLRSsG4
Dream Funded Team
18 Sep 14 01:15:31
RT @MParekh: #Apple CEO @Tim_Cook makes new #Privacy promise. Clear line in sand vs. #Google & #Facebook: http://t.co/E4jwjiKxZ8 $AAPL $GOO…
Apple News $AAPL
18 Sep 14 01:14:47
$AAPL Apple updates security policies in Cook open letter, stresses privacy http://t.co/qoTWpRvu80 @MaximumPenny
♥ @MyOrgone ♥
18 Sep 14 01:12:06
Stop trading $AAPL!! Make 100% a year using our 'Top 10 Hedge Fund' Artificial Intelligence - http://t.co/JnYV7VSLtQ $SPY $QQQ
José Manuel Lopez
18 Sep 14 01:08:19
RT @andresllorente: Problemas que puede encontrar Apple Pay en Europa http://t.co/HaatBVinn2 $AAPL #ApplePay via @elblogsalmon
wendy rocklein
18 Sep 14 01:08:18
iPhone reviews roll in and are uniformly positive http://t.co/RF0191N7pN $AAPL
[ Apple News ]
18 Sep 14 01:02:19
Apple's iOS 8 will feature an encryption system that can only be unlocked by ... https://t.co/typ0kAluYJ $aapl #apple http://t.co/18yCGdKlPk
Stock Rocket
18 Sep 14 01:01:25
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $TRX $AAPL $GOOG
Barbara Negrescu
18 Sep 14 00:56:54
RT @TheStreet: Apple has reported strong initial demand for the iPhone 6, yet $AAPL shares have actually fallen: http://t.co/aSGfvKOLLm via…
TV_Trading Ideas
18 Sep 14 00:49:48
AAPL is range bound $AAPL http://t.co/EY0iEYXGmM
Hermes Trism
18 Sep 14 00:47:14
RT @WSJ: How to remove U2's new album from your iTunes: http://t.co/hlyVZaOYWi $AAPL http://t.co/O3xXfuaMmO
BUZZ Just-In
18 Sep 14 00:46:32
Access curated tweets- high relevancy, less spam- US Tech Giants http://t.co/QnTy4vuEs5 $MSFT $TWTR $AAPL $FB $GOOG
France Marcum
18 Sep 14 00:43:18
RT @MetaTrades: Here's the big news on $SFOR that shot the stock up over 300% today http://t.co/tOB5WvYOIu They now have deals with $MSFT +…
Mesut Darendeli
18 Sep 14 00:41:14
@Baris A running total market cap dominated by US companies by adding $AAPL contribution as an internet co. The list would've looked worst.
18 Sep 14 00:39:17
Apple hiring manager to handle China government data requests. $AAPL. http://t.co/I8bvljNdfS
Jet Life PennyStock$
18 Sep 14 00:37:16
Dollar$OnPennies: $AAPL Gallery View http://t.co/HhHnWbTn5d
18 Sep 14 00:36:09
Apple’s Tim Cook takes a swipe at Google, Facebook. $AAPL, $FB, $GOOG. http://t.co/IEqKyB1B88
Mesut Darendeli
18 Sep 14 00:36:01
@Baris @WSJ Think about the cumilative frequence by $AAPL getting into that list.
18 Sep 14 00:33:23
#Apple rumored to tease new #iPads, #OSX #Yosemite on October 21 $AAPL http://t.co/jrIMdbN5yt
Helmy Bayasud
18 Sep 14 00:32:07
$AAPL I thought stocktwits wasn't working on iOS 8. It works fine for me. Swift key is fabulous too!
Arthur Hill
18 Sep 14 00:27:42
$WMT and $BBY are bypassing $AAPL pay in favor of CurrentC, which is not linked to a credit card and can be used on ANY smartphone.
Dividend Yield
18 Sep 14 00:27:23
100 Of Americas Fastest Growing Stocks That Made Investors Ric - http://t.co/ZJEs966yLm - $AAPL $BIDU $HF $IPGP $LULU $NOG $SLW $RES
Media Sentiment
18 Sep 14 00:24:52
$AAPL received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 1
Magne Thyrhaug
18 Sep 14 00:23:26
Going hard at Google. “@jonfortt: Here's $AAPL CEO @tim_cook's letter on privacy, posted at http://t.co/Az3Ha9knUy: http://t.co/mwlQeN1Kw7”
♥ @MyOrgone ♥
18 Sep 14 00:12:05
Ditch $AAPL!! Earn 100% per year using our 'Top 10 Hedge Fund' Artificial Intelligence - http://t.co/x7MDlPJXnp @CNBC $QQQ
18 Sep 14 00:10:03
$AAPL doesn't embrace green plants. Apple pull iPhone cannabis drug dealing game after it rockets to top of App Store http://t.co/8Pa3mXoQqr
Stock Rocket
18 Sep 14 00:04:43
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $AAPL $BAC $CBIS
Jet Life PennyStock$
18 Sep 14 00:04:30
Dollar$OnPennies: $AAPL Weekly http://t.co/qV26Bb5a55
17 Sep 14 23:52:11
@RickAckerman Agree 100%. Used this strategy during the $AAPL move from $700 to $350 in 2012-13. Huge moves within mins. Always contra
Stock Rocket
17 Sep 14 23:44:53
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $DO $ALL $AAPL
17 Sep 14 23:43:05
.@Samsungtweets loses #AppleWatch display contract to @LGUS Display $AAPL, http://t.co/1SjdcsUTR7 http://t.co/Agj7yr9ijN
Call Me Baloo
17 Sep 14 23:42:34
$AAPL ATR http://t.co/bJOONbvKSq
17 Sep 14 23:41:35
RT @MParekh: #Apple CEO @Tim_Cook makes new #Privacy promise. Clear line in sand vs. #Google & #Facebook: http://t.co/E4jwjiKxZ8 $AAPL $GOO…
17 Sep 14 23:40:03
Apple : Scammers go phishing for Apples http://t.co/Gg2YiDzf47 $AAPL
17 Sep 14 23:37:02
#iPhone reviews roll in and are uniformly positive $aapl - Seeking Alpha http://t.co/sXTxPXsaLF
Karena TT
17 Sep 14 23:36:35
RT @TalkMarkets: Google Aims To Take Android One To Next 5 Billion $GOOG $FB $AAPL $MSFT http://t.co/IctuGtf9zY
Apple News $AAPL
17 Sep 14 23:36:34
$AAPL Bloomberg profiles Apple CEO Tim Cook, sheds light on modern Apple http://t.co/AFtzLxqZVn @MaximumPenny
17 Sep 14 23:36:34
RT @MParekh: #Apple CEO @Tim_Cook makes new #Privacy promise. Clear line in sand vs. #Google & #Facebook: http://t.co/E4jwjiKxZ8 $AAPL $GOO…
Michael Parekh
17 Sep 14 23:36:08
#Apple CEO @Tim_Cook makes new #Privacy promise. Clear line in sand vs. #Google & #Facebook: http://t.co/E4jwjiKxZ8 $AAPL $GOOG $FB $$
Tony Collings
17 Sep 14 23:30:14
$AAPL @AppStore Would love to install #iOS8 but with 5.8Gb required I have no space on my phone :-/
17 Sep 14 23:29:36
Jumbo iPad could be Apple's next 'one more thing' http://t.co/dRYJjYeyQG #IBDBlogs via @IBDinvestors $AAPL
17 Sep 14 23:27:42
#Investors Can't Believe The #Apple #Hype $aapl http://t.co/xbipnxGRLb
17 Sep 14 23:25:03
Apple : Intrix Issues Statement Regarding Release of the NFC Enabled iPhone 6 and Apple Watch http://t.co/hhCUsBLnwi $AAPL
rose smith
17 Sep 14 23:22:30
iPhone 6 Review: Meet The New Best Smartphone $aapl http://t.co/N1IyTTZgj4 http://t.co/sx2nCqbnBh
rose smith
17 Sep 14 23:22:23
iPhone 6 Review: Meet The New Best Smartphone $aapl http://t.co/N1IyTTZgj4 http://t.co/LbdXXOUzit
17 Sep 14 23:18:27
RT @DJThistle: Apple Updates iMovie and Numbers for iOS 8 [iOS Blog]: Apple has begun updating its own apps for iOS 8, ... http://t.co/8DSV…
BUZZ Just-In
17 Sep 14 23:16:27
Monitor your watchlist of assets for tweets- US Tech Giants http://t.co/QnTy4vuEs5 $MSFT $TWTR $AAPL $FB $GOOG
♥ @MyOrgone ♥
17 Sep 14 23:16:05
Dump $AAPL!!! Earn 100% a year using our 'Top 10 Hedge Fund' Artificial Intelligence - http://t.co/kR0C8PwuDa $SPY $QQQ
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.