“The Apple (AAPL) death march, mirroring the 2009 end-of-year action, continues,” Jason Schwarz writes for TheStreet. “All those investors who are loaded up on January out-of-the-money calls — in hopes that the Verizon, China, iPad/iPhone, MacBook Air, Apple TV and earnings catalysts will lift the stock — have failed to identify the current market trend and have failed to accurately interpret historical precedent. We are in a very difficult investment environment right now and must invest accordingly.”
Consider the following market moving news items of the day:
• WikiLeaks is set to release Enron-like internal documents from a major U.S. bank sometime early next year.
• European contagion fear increased after the Irish bailout.
• The market is no longer certain that U.S. tax cuts are coming in 2011. President Obama is meeting with both sides to discuss the issue. So far, we see Democrats taking a hard line stance against the pro-growth policies.
Schwarz writes, “Bad sentiment surrounding banks, Europe, and tax policy is not a good thing for the stock market… The 2009 Apple comparison could be setting up quite nicely. During that death march, the only productive time to own Apple was from the Dec. 7 low of $188 until it reached $209 on Dec. 24. If we can get an entry below $300 during the first 10 days of December, we will be compelled to buy.”
Read more in the full article here.