Another Apple Day

Does yesterday's strong close trump the ugliness in most of the world's stock markets?

Probably not, though taken in isolation, the U.S. markets do trade pretty darn well. That said, the U.S. market doesn't trade in isolation, and those roiled international markets raise a lot of risk for a U.S. market pullback.

The only safe sector seems to be tech, which seems to be benefiting from sector rotation when the weakness from the international markets does leak into the U.S. market.

I still say buy tech, though I'm less convinced about selling the semis now that the glut woes are becoming widespread, well-known and therefore most likely discounted. I'll be looking to scale into some more tech today, regardless of the action in the broader markets. Still gentle for now, though.

Speaking of tech, in a note this morning, Bear Stearns strategist Francois Trahan says a rebound in economic prospects should be a positive for the sector and notes valuations are attractive and sentiment is negative. He upgraded the sector to overweight from underweight. You don't think my piece on the topic yesterday convinced him, do you?

The research flow this morning is full of price-target hikes for Apple (AAPL - commentary - Cramer's Take). But I am surprised that the tone of the notes all seem so skeptical: The iPhone is only at Cingular, it costs too much (do they think Apple will leave it at the introductory price for long?!), etc. It's looking like another Apple Day at the market.

More soon.

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.