This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple Death March Continues

NEW YORK (TheStreet) -- The Apple (AAPL) death march, mirroring the 2009 end-of-year action, continues. All those investors who are loaded up on January out-of-the-money calls -- in hopes that the Verizon, China, iPad/iPhone, MacBook Air, Apple TV and earnings catalysts will lift the stock -- have failed to identify the current market trend and have failed to accurately interpret historical precedent. We are in a very difficult investment environment right now and must invest accordingly. Consider the following market moving news items of the day:

  • WikiLeaks is set to release Enron-like internal documents from a major U.S. bank sometime early next year. As if the banks didn't already have enough to worry about because of the foreclosure fiasco, now investors are going to deal with the uncertainty as to which bank will get hit. The path of least resistance is to the downside for banks.
  • European contagion fear increased after the Irish bailout. This is adding fuel to the market correction even if its effect is exaggerated by over-eager bond traders. It looks like Europe debt contagion will continue to be utilized as a primary driver whenever the market is in need of a technical correction.
  • The market is no longer certain that U.S. tax cuts are coming in 2011. President Obama is meeting with both sides to discuss the issue. So far, we see Democrats taking a hard line stance against the pro-growth policies.
  • Bad sentiment surrounding banks, Europe, and tax policy is not a good thing for the stock market. As we measure the pulse of the market's new identity in Stage Three of the recovery, we are hoping to get a clear picture of its new trading range. During Stage Two, the Dow liked to dip into the 9,000s before investors were compelled to buy. I doubt we will go that low in Stage Three. This should be a period of higher lows and higher highs but we will have to wait and see how low this selloff takes us.

    Actually, the 2009 Apple comparison could be setting up quite nicely. During that death march, the only productive time to own Apple was from the Dec. 7 low of $188 until it reached $209 on Dec. 24. If we can get an entry below $300 during the first 10 days of December, we will be compelled to buy.

    1 of 2

    Select the service that is right for you!

    COMPARE ALL SERVICES
    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!
    DOW 16,947.16 +27.57 0.16%
    S&P 500 1,982.05 +0.45 0.02%
    NASDAQ 4,524.0050 -3.5090 -0.08%

    Brokerage Partners

    Rates from Bankrate.com

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs