Someone pointed this out to me so I thought I'd pass it along. Back in April the S&P 500 was hanging in there while there was a lot of damage being done in the Russell 2000. So the main index everyone watches was benign but a lot of stocks under the surface were being damaged. This is reminiscent of what has been happening in October up until this late last week when the S&P 500 (and DJIA) finally began taking some bullets.
However here is the really interesting part. Apple (AAPL) dropped from a peak of $644 to a low of $555 in a few week span going into its earnings back in April; a drop of 13.8%. It then gapped up dramatically on its earning day … and then began to roll over. That led to a very bad May in markets.
Flash forward half a year. Apple dropped from a peak of $705 to a low of $609 in a few week span going into tomorrow's earnings; a drop of 13.6%. If it gaps up dramatically on earnings Friday … hmm.
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund's holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog