Chipotle is down this morning after Cramer said some negative words about the stock last night. While his track record on the show isn’t especially flattering, stocks usually trade a few days in line with his calls.
Nucor appears to be rolling over after not participating in the overall rally the market has been providing. Look for laggards as short candidates if we get more momentum down in the overall markets.
Apple took a big hit yesterday. While my bearish call was early and I don’t have a position at this time, names that are extended may also be hit hard as valuations may be perceived as too high.
After a nasty reversal yesterday, Perfect World is trying to hold above 30. I would exercise caution as this stock will follow many other Chinese names and this area is becoming a bit unstable.
Its a tough call, but I am beginning to think that NutriSystem is finding support at 31. I still hold my short position but would watch this level carefully.
Dynamics are changing fast. I have a lot of reading and thinking to do this weekend. Next week will definitely be interesting with options expiration providing some near-term catalysts. Keep that defense on the field.
ZDS
update 10/12
October 15th, 2007 at 1:29 am
I am having a tough time with Apple. I think this is going to be a serious blowout quarter, even surpassing the already bullish sentiment. But will it run into earnings and then sell off? Or could it sell off before if the market weakens? Not sure. Can’t say what the stock will do but I truly think back to school is going to be the 2nd Christmas of the year for Apple. iPod Touch, laptop sales, and first true sense of how ridiculous their revenue sharing on iPhone service contracts should all be upside surprises in my book. It appears, along with Google, the 2 companies that will be dominating our consumer convergence/digital entertainment world. That said, neither is cheap nor not overextended technically! Google on Thursday should be interesting – if they show no slowdown from all these small/medium mortgage companies imploding and no longer advertising I’d have to give them credit.