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Can We Trust Apple (AAPL) Anymore?

Scott Redler

Major US indices finished mixed Wednesday in a roller-coaster session. The Dow and S&P finished with gains, while the Nasdaq dropped 0.73%, largely due to one bad Apple. Markets opened near the flat line this morning, and saw early selling pressure to break yesterday's low. The S&P and Dow then bounced hard off lows in the late morning before fading again into the close.

Right now the market is very hit or miss and not easy to trust, in my opinion. I feel the same way about most stocks right now, as well.

Banks stood out today after a few of them set up well in the last couple weeks. The fact that the market bought the Citigroup (NYSE:C) news sparked the rally in the sector.

Bank of America (BAC) blasted through $10 and went as high as $10.56 before pulling off slightly into the close. We have highlighted BAC repeatedly as a powerful trade set-up on both the morning Price Point Sheet and our Off the Charts newsletter, and today our patience was rewarded. After today's 5.7% gain, now is the time to trim and trail the position based on your personal trading time frame.

JP Morgan (JPM) and Wells Fargo (WFC) have some mid-level points to watch. JPM could get momentum if it can clear and hold above $41.50ish. WFC has the same type of pattern, and the key level there is $33.25-33.35.

Apple (AAPL) got hit very hard for numerous reasons today and led the Nasdaq lower. The Wall Street Journal contacted us to comment on the AAPL sell-off, and you can get our view on it there: Apple's Halo Cracked. I came in long AAPL and got stopped out around $563. Obviously it was not a good trade, but it could have also been much worse. AAPL didn't bounce with the market in the late morning, but participated in the sell-off into the close. AAPL was saved by the closing bell, and finished the day down 6.4%.

Amazon (AMZN) is still acting well and continues to be a market leader.

Google (GOOG) is holding okay. As long as it stays above the $680 area, I feel the long trade might be intact.

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*DISCLOSURES: Scott Redler is long BAC, JPM, YHOO. Short SPY. Traded but flat INTC, DDD, AAPL