Stocks Lose Early October 2012 Gains As Google And Apple Selling Pressure Continues:
Stocks continued the market slide from yesterday as investors took more gains from the recent rally. Traders are looking to see if the latest technical support levels can hold and we’ve been watching Apple recently which hasn’t rebounded since hitting a new high. The price action in Apple is typical after a new product release and although the iPhone 5 has had some kinks along with some strong advertising from Samsung, it’s still a top selling item. The iPad mini is set for an unveiling sometime soon which could be another jolt in the share price.
We are focused on Google and it has not given us any reason to become bullish yet. We don’t believe the market is in correction mode ahead of a presidential election and investors may try to get ahead of November 7 with another round of buying before the results come in. The market is set to rally higher regardless of who wins due to the increase in certainty after the election but we believe the magnitude might be stronger if investors expect Romney to win as he is perceived to be more business friendly. We are looking for buying opportunities after we see some stabilization in tech, small caps and the financials. The NASDAQ dropped 1.52 percent falling 47.33 points to 3,065.
