Q: Cody, as we all know the investor sentiment can outpace any technical patterns. We have been repeatedly hearing about double top in case of AAPL and this pattern will lead to tremendous price decline. Though we know that AAPL fundamentals are intact, do you think that there is change in investor sentiment for the bear term trading?
Cody Willard: Freudian slip – “Bear-term trading?” I just don’t think that the value of AAPL’s stock price and direction thereof can ever be successfully navigated using some lines on a chart of its past trading. If I had a dime for everytime a technical analyst told me that AAPL’s historic descent from $7 to $700 was over along the way…well, that’d be a huge pile of dimes to go along with those huge gains in AAPL that they missed while they were fretting about their pictures.
Q: Happy New Year, Cody. Was just wondering if you had any short term trades in mind for the debt ceiling/sequester train wreck that’s coming in two months.
Cody Willard: Here’s my initial thoughts about the prepackaged hype over the next debt-ceiling/fiscal-cliff/austerity crisis that’s coming. Has the market finally learned to look past this nonsense? For all the weakness and panicky headlines in the markets during this last manufactured crisis/resolution, there wasn’t a true panic of the sort we’ve seen with the repeated euro crisis panic cycle. I couldn’t believe that the reporters and pundits were already trying to rescare the world into another cycle of tax/fiscal/entitlement negotiations. Other than traders/the powers-that-be tanking the markets into that next cycle of hype, there’s nothing economic or meaningfully political in the actual bill that will again at some point be passed by the Republican/Democrat Regime and will be full of all kinds of new corporate welfare and subsidies just like this one was. There will be no meaningful recovery to our economy or our society until the banks and bankers are restrained and prosecuted for their crimes and the entire financial system reformed and that ain’t ever gonna happen with the Republican/Democrat regime in power.
Much more in the full Q&A here.
[Thanks to MacDailyNews Reader "Ellis D." for the heads up.]