Misplaced MacWorld Pessimism

That was a nice close to the day. Many will call it an iPhone-inspired rally, but I think it was broader and steadier than that. Whatever you want to call it, it was a good finish, and Apple (AAPL - commentary - Cramer's Take) was rocking.

Mea culpa on my pessimism into the MacWorld show. The iPhone is just so incredibly cool that, even after today's pop, its potential still isn't baked into the stock. It's funny to think that the Street will have to explain the changes to its discounted cash flow models as a function of a "coolness factor." But it is what it is, and cool it is!

Speaking of discounting, if one were to discount the impact that bulk new year capital-allocation movements are having on volatility, I think we'd have to call the recent action in the U.S. stock market rather bullish. We can't overlook the extreme volatility and the global markets' dislocations in our technical and reflexive models, though. And those dislocations are worrisome indeed, enough to keep exuberance in check for now.

At any rate, I want and am buying tech for now.

Earnings season is upon us already with Alcoa (AA - commentary - Cramer's Take) kicking us off. Here's to looking forward to the flood of information from which we all can learn during the endless conference-call sessions that start now.

At the time of publication, the firm in which Willard is a partner was net long Apple, although positions can change at any time and without notice.

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Cody Willard is the manager of CL Willard Capital Management, LLC. He is a regular guest on Fox News, CNBC and other networks, and he writes a monthly column for the Financial Times. He is also an adjunct professor at Seton Hall University and the author of TheCodyReport.net, a monthly stock market newsletter. Willard appreciates your feedback -- click here to send him an email.