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Headwinds Could Force a Breather for Bulls

By  +Follow June 13, 2014 12:24PM
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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.

 

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Results for aapl
Roman Serrano
30 Jul 15 10:23:57
Compra Límite de 10000 Acciones a 122 en $AAPL con un PT en 130 y con un SL en 110 vía @TTtradert... http://t.co/tl5P8lLxWK
@SWETRADER
30 Jul 15 10:23:27
This explains why $AAPL makes more than 90% of all smartphone profits. This trend is most likely going to persist.
عبير كول
30 Jul 15 10:21:47
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
~~متفائله~~
30 Jul 15 10:21:45
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
نوف الشريف ♡
30 Jul 15 10:20:33
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
سًسًـقَرآطٌ ‏
30 Jul 15 10:20:30
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
Short premo
30 Jul 15 10:20:27
$AAPL you got a rally to unch in you, right??
@SWETRADER
30 Jul 15 10:19:40
$AAPL is greatly misunderstood, they own their ecosystem and therefor have no competitors unlike Samsung and the rest.
Sufiy
30 Jul 15 10:19:15
RT @ILCtsxv: Dump The Pump: Warren Buffett And Elon Musk To Spark A #Lithium Boom. https://t.co/n8w59rFfM3 $TSLA $LIT $AAPL $GM $F $SQM $FM…
أم محمد
30 Jul 15 10:18:48
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
حٻۓ ٵݪٵݥٿڶٵڪۓ ‏
30 Jul 15 10:18:43
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
أميره بحساآسي
30 Jul 15 10:18:41
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
راكان العجمي
30 Jul 15 10:18:38
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
محمد السبيعي
30 Jul 15 10:18:35
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
فوفو العنزي
30 Jul 15 10:18:33
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
العسيري
30 Jul 15 10:18:30
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
عْبدالله
30 Jul 15 10:18:28
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
الحلا
30 Jul 15 10:18:26
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
Annie
30 Jul 15 10:18:25
$QQQ $GOOGL $FB $AAPL
كہلہي ذوقہہ ‏
30 Jul 15 10:18:23
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
فواز المطيري
30 Jul 15 10:18:21
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
moonshine
30 Jul 15 10:18:20
@canuck2usa swung the profits to $aapl $123-124 Cs - should be easy bounce to $125/$126 next few days
الريم السهلي
30 Jul 15 10:18:18
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
مُنهمِك
30 Jul 15 10:18:14
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
بنت عتيبه
30 Jul 15 10:18:12
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
اُھِداب الشّمریے
30 Jul 15 10:18:10
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
لطيفه
30 Jul 15 10:18:07
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
PamphletShop
30 Jul 15 10:18:06
$SPNC Spectranetics http://t.co/UKZ3MRGmpH $AAPL $BAC $FB $SPY $GE $BABA $NFLX $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA #FX #fx
ابراهيم البراهيم
30 Jul 15 10:18:05
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
Trade Archer
30 Jul 15 10:17:01
$AAPL (5m): S1 pivot resistance. OBV near ema50(OBV); mildly bearish.
Dan
30 Jul 15 10:16:50
$AAPL day 7 after ER. Tempting here at 122.25
اسياء
30 Jul 15 10:16:47
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
شبيب السبيعي
30 Jul 15 10:16:44
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
بنت عتيبه
30 Jul 15 10:16:42
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
جود الحزن
30 Jul 15 10:16:39
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
ندؤوؤوؤوؤش
30 Jul 15 10:16:37
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
Alex Vieira
30 Jul 15 10:16:36
I fully comprehend why Apple and Yelp investor are retards $YELP $AAPL - Billionaire Sell Short Apple and Yelp - https://t.co/Euq63zQTcU
متفائله حد السماء
30 Jul 15 10:16:35
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
مضيفه طيران
30 Jul 15 10:16:32
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
حسين السلطان
30 Jul 15 10:16:30
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
حمد التويجري
30 Jul 15 10:16:28
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
قہ ـلـب خہ ـجہ ـول ♡
30 Jul 15 10:16:26
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
بدر اليامي
30 Jul 15 10:16:23
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
عدنان بن صالح
30 Jul 15 10:16:21
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
سما
30 Jul 15 10:16:19
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
خلود السبيعي
30 Jul 15 10:16:17
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
الزهره البيضاء
30 Jul 15 10:16:12
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
جوليا بنت ابوها
30 Jul 15 10:16:08
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
منصور المنصور
30 Jul 15 10:16:06
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
نهار العجمي
30 Jul 15 10:16:04
RT @JaberNaffa: $FB weekly chart: After daily gap fill, targeting 110$ then 114.84 #oil #gold $spx $spy $goog $aapl $bidu http://t.co/V…
				
				
By  +Follow June 13, 2014 12:24PM
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