It’s the last trading week of October and Apple has mojo following its recent quarterly earnings report and the release of new iMacs. Will AAPL move higher in the morning or will the share price consolidate to protect the $200 ground?

We’ve been tied to the dollar for a while.  Looking at the eur/$ we touched the upper trend line tonight.  If we break through the rally has legs but there is a good chance the $ finds short term strength here which means short term weakness for the indices.  Something to keep an eye on.  $ touched 1.507 tonight.  GS also looks like it wants to go to 175 and could easily do that intraday and that could be tomorrow.  Next few days / week could be very telling for the market.  I think we have over 100 SPX companies reporting this week.  Should be interesting if you are trading.

Monday

R4         212.03
  midpoint   210.75
R3       209.46
  midpoint   208.18
R2       206.89
  midpoint   206.16
R1       205.42
  midpoint   204.87
PP       204.32
  midpoint   203.59
S1       202.85
  midpoint   202.30
S2       201.75
  midpoint   200.47
S3       199.18
  midpoint   197.90
S4       196.61

I think there will be pressure on the share price as I am not reading much negative about the the W7 launch in the MSM. But my read is this will be temporary. Higher by the end of the day.

stkstalker - 25 October 2009 10:48 PM

I think there will be pressure on the share price as I am not reading much negative about the the W7 launch in the MSM. But my read is this will be temporary. Higher by the end of the day.

That’s because the Windows 7 launch is a real yawner. Between the release of Windows XP (in 2001) and Windows 7 (2009) the market has moved decidedly to handheld devices. For the most part netbooks owners will not be interested in the upgrade and MSFT is focused on new OEM sales. This could be a boon to Apple as iPhone owners and many iPod owners take a second look before plunking down money on a new Windows box.

Please remember Windows XP (MSFT’s last successful OS release) came to market at the same time as the original iPod. A lot has changed over the past eight years.

Dick Bove really whacking the banks again.  BKX is weak and this won’t help.

runedge - 26 October 2009 08:03 AM

Dick Bove really whacking the banks again.  BKX is weak and this won’t help.

Where did he do this whacking? CNBC? behind the tool shed? Justs last week he had positive things to say about C (eventually).

runedge - 26 October 2009 08:03 AM

Dick Bove really whacking the banks again.  BKX is weak and this won’t help.

The world is figuring out that we’re currently absorbing 300,000 foreclosures a month and that we’ve got about 5,000,000 more foreclosures to go before real estate markets stabilize I reckon.

Bought a little BAC @ $15.62.  I think the selloff is a little overdone.

incorrigible - 26 October 2009 09:47 AM

Bought a little BAC @ $15.62.  I think the selloff is a little overdone.

  Watch it - sitting right at what should be support but if that fails, could fall hard.  Been eyeing it myself but not trusting this market intraday.

incorrigible - 26 October 2009 09:47 AM

Bought a little BAC @ $15.62.  I think the selloff is a little overdone.

Countrywide has been subpoenaed to provide documents on its VIP loan program (sweetheart loans) to members on Congress. This is rich: the guy who heads up the investigation claims he was unaware that he was entered into the program when he got his own Countrywide home loan. The last paragraph from the linked story is precious:

As the largest subprime lender and valued partner of Fannie Mae and Freddie Mac, Countrywide was at the core of the mortgage meltdown. The political class wants to blame the mania and panic on the bankers, but the bankers couldn’t have made the subprime lending mess without plenty of political help from Congress. To ensure that this disaster is never repeated, it is critical that Congress uncovers the facts about the extraordinary efforts by Countrywide and Fannie and Freddie to influence federal housing policy.

In other news, McDonalds is closing all of its Icelandic stores. It turns out Iceland really is an island.

runedge - 26 October 2009 09:50 AM

incorrigible - 26 October 2009 09:47 AM

Bought a little BAC @ $15.62.  I think the selloff is a little overdone.

  Watch it - sitting right at what should be support but if that fails, could fall hard.  Been eyeing it myself but not trusting this market intraday.

Looks like your’re right. 

incorrigible - 26 October 2009 10:41 AM

runedge - 26 October 2009 09:50 AM

incorrigible - 26 October 2009 09:47 AM

Bought a little BAC @ $15.62.  I think the selloff is a little overdone.

  Watch it - sitting right at what should be support but if that fails, could fall hard.  Been eyeing it myself but not trusting this market intraday.

Looks like your’re right. 

C also dropped off a cliff about the same time. Testing (and failing ) support at 4.37.

incorrigible - 26 October 2009 10:41 AM

runedge - 26 October 2009 09:50 AM

incorrigible - 26 October 2009 09:47 AM

Bought a little BAC @ $15.62.  I think the selloff is a little overdone.

  Watch it - sitting right at what should be support but if that fails, could fall hard.  Been eyeing it myself but not trusting this market intraday.

Looks like your’re right. 

Bove who told us last week that he will stop giving us on the minute commentary, provided us some on the minute commentary creating more fear.

I’m with the buying on weakness camp. However, traders didn’t begin buying until the RSI dipped below 20. My own thesis is that when nobody knows what is going on (like today), then I weight the RSI (which is the best forward looking indicator even though it breaks all the time in sustained trends) higher than lines of resistance or momentum.

willrob - 26 October 2009 10:47 AM

incorrigible - 26 October 2009 10:41 AM

runedge - 26 October 2009 09:50 AM

incorrigible - 26 October 2009 09:47 AM

Bought a little BAC @ $15.62.  I think the selloff is a little overdone.

  Watch it - sitting right at what should be support but if that fails, could fall hard.  Been eyeing it myself but not trusting this market intraday.

Looks like your’re right. 

C also dropped off a cliff about the same time. Testing (and failing ) support at 4.37.

The entire financial sector dove at once like a group of misfit synchronized swimmers.

Good Morning Boys and Girls

Well We started off strong and now being dragged down by the market.

Looks like the banks are the culprits here.  Oct. has one more trading week left, so we could see that Oct. surprise after all.  Hopefully we don’t drop more then 5% on the DOW putting us around 9500.  Then we will be off to the races toward the end of the year.

We just went negative.

Good luck to all.