What We're Reading

In the stock market, until recently, just about any news was good news.

Company earnings stumbled? Investors shrugged them off, sending shares higher. Economic growth was disappointing? So what.

But now that is changing.

Consider the recent trading in Apple, the world’s most valuable public company and a certifiable stock market darling. Apple announced third-quarter results on July 21 that were “amazing,” according to Tim Cook, its chief executive. Revenue rose 33 percent over the same period last year, and earnings per share were up 45 percent.

But investors seized on the fact that demand for the iPhone and the company’s new smartwatch didn’t meet expectations. Apple’s shares have lost 11.3 percent since then.

“I thought the break in Apple was a pretty big deal,” said Bill Fleckenstein, a veteran money manager at Fleckenstein Capital in Seattle. “They made all the numbers, but units were light. Maybe that is a precursor to what the entire tape is going to show us.”

The reaction to C

1999: Priceline.com, ($PCLN) which had gone public at $16 a share exactly one month earlier, closes the day at $162.375 -- giving the tiny Internet company a one-month return of 914.8% and a total market value of $23 billion. It's probably the fastest and stupidest stock run-up yet recorded. But it's all downhill from here, as Priceline.com ends up losing 99% of its value by the end of 2000.

Fast forward 15 years and everyone books airfares and hotels online.  Everyone.  PCLN closing price yesterday was $1154.84 after reaching an all time high of $1378.96.  Oh to have bought that dip!

Was TWTR the tech top in the recent bull market?  Will we reach a new high and wait for Alibaba?  Are we in a Fed-induced bubble or as Einhorn states, only in select areas?  What are your thoughts?

Data courtesy of JasonZweig

Art Cashin called it.  Wasn't difficult to spot.  Possible bounce off of the February low.  Now what?  Next stop.........right shoulder?  Short trading weeks tend to be bullish.  We shall see.  I know I'm eager to re-short names at their falling 20d or 50d.  At least there, risk would be defined.  How about you?