Jim:
Wow!... Some good
things actually
happened today,
giving us a
much-deserved
889-point rally!...
What happened?...
Well, the end of the
Boeing (BA)
strike is near... Oh
man, that stock was
up the most it's
been in ages. That
has been killing
American
manufacturing...
We finally saw some
positive movement in
Asia... some
potential rate
cuts... Hong Kong
came back...
Then word spread
like wildfire that
the Europeans might
surprise us with a
huge rate cut as
soon as tomorrow...
not to mention
rumors of a
half-point rate cut
coming in this
country... from the
people who used to:
"They know
nothing!"... (sound
effect)... And that
would be great.
Don't listen to the
people who say it
doesn't matter. I
mean, anything that
makes money cheaper
can help get us out
of this faster...
See all
of
tonight's
stocks
mentioned
on
Yahoo!
Finance,
here...
Tuesday,
October 28, 2008
(Cont'd from
above)...
The fix... the fix
now seems to be in
for some GM/Chrysler
merger that would
make a lot of people
a lot of money if
they're
shareholders, even
if they shouldn't
be...
And the end of the
fiscal year for
mutual funds is
finally upon us...
That's right...
their year ends at
the end of October,
so the selling, at
least for mutual
funds, may have
taken a break...
And we had...
hallelujah!... No
new hedge funds
going bust!...
Perhaps, more
importantly,
substantively... the
commercial paper
market, where many
American companies
finance their
day-to-day
businesses, came
alive with pleasure,
courtesy of the
Federal Reserve's
plan to allow
issuers to get some
liquidity... they'll
buy the stuff from
them!... That's a
gigantic positive.
And, after a
two-week-long bear
market, we caught a
one-day bull market,
up more than 10%...
the second-biggest
point gain in
history...
How do you spot
these one-day bull
markets in the
morning, so you can
get involved in
them...
Now lots of people
take their que from
the S&P 500 futures,
which were rallying
overnight and then
this morning...
Nah... they don't
get it right...
I'm giving you my
own method...
Tonight, I'm going
to introduce a
different "tell"...
one that works not
just on a daily
basis, like today,
but in the
intermediate term,
as an umbrella for
many stocks to go
higher under...
That's right... You
could've seen this
play out
beforehand... You
could have gotten a
tell that today
would be an Acme
Dynamite kind of
day... by watching
one stock... one
stock... and that
stock is...
How do we know that
AAPL's the right
tell for this
market?... Every
market - even a
volatile and
sadistic market like
this one - has one
or two stocks that
act as barometers
for the health of
the market, because
the comanies
underneath the
stocks are just on
fire... the
businesses are doing
that well...
If you know how well
these litmus test
stocks are doing,
then you can tell
which way the market
might go on a given
day...
Here's the bottom
line...
The bottom line!:
Yes, I would buy Apple, Inc. (AAPL)
here, but that's not
the takeaway of this
piece... The more
important point is
that, as long as
AAPL remains stuck
in the mud, even as
it has the best
fundamentals of any
company I follow,
every other growth
stock is stuck with
it. When AAPL goes
higher, as it did
earlier this
morning, the rest of
the market comes
with it. AAPL is the
key to this moment's
stock market.
