Apple Sets the Tone

TheStreet.com

Is it Apple AAPL tick by tick? Lots of people have been speculating how important Apple has become to the market. Given that it is 20% of the Nasdaq, we know that it's a huge deal to that index.

But can this market rally without Apple, even intraday?

Here's my take. You may not be able to pin down the correlation, but it has become highly unlikely to have a big rally in this market without Apple participating, if only because it has become ingrained in the American stock psyche like no other stock I have ever seen.

It simply colors everything, and when it goes down, there is a presumption that something is very wrong, and if it is very wrong with Apple, it has to be really wrong for everything else, except perhaps its enemy, Google GOOG .

Now, here's a bit of semi-circular reasoning, but if you were to take Apple out of the indices so they wouldn't be biased by it, I still don't think the impact would be lessened. This stock has become the heart and soul of stock trading, and everyone and his brother seems to have a chart of where it fails and where it holds and where it bounces to and where it gets repelled.

Until it gets back into a gentle rise, something that can happen as it changes the tenor of the Maps discussion -- hey it can happen, as Jobs changed the tenor of the antenna discussion -- I think we are going to be trapped by it in one form or another.

It's just too important.

This is a shame. Apple's issues are really self-inflicted. It could have kept Google Maps for now while working on its own system, which I have now used and believe is, theoretically, far superior to Google's, except that it doesn't have the right information programmed into it.

But until Apple comes up with a better than an "I am sorry" answer, I think we are going to be reading off the Apple chart, and that means we are in no-man's land, which means the overall market might be in no man's land, too.

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