Well what the Federal Reserve gave us on Tuesday was taken back Wednesday. After recovering 400 points in the DOW on Tuesday, due to positive Fed Speak, the DOW fell over 500 points as worries over the European debt crisis again became center stage. A little side issue is brewing and may impact investor sentiment, KOREA. It seems there are itchy trigger fingers at the 38th parallel both sides lobbed things that go boom at each other. No reports of injuries but this simmering geography may show itself to be more of an issue than the market currently appreciates.
We saw some cracks in the market before the trading session opened, we even told you to walk away after making any strategic buys. Well if you did not walk away, the roller coaster ride left your heart in your mouth. These points are re-entry opportunities but tread lightly and carefully. YHOO however, interestingly enough, held its ground and reported better search gains in July. According to the STREET the MicroSoft BING deal is starting to generate positive results.
Financials are taking a hit but most bank exposure to Europe is limited and Bank of America has almost no exposure. Wells Fargo and Morgan Stanley are quality buys under the circumstances.
Congratulations to Apple (NASDAQ: AAPL) they are now the most valuable publicly traded company surpassing Exxon by almost $30B in value. By the way AAPL has over $70B of cash and equivalents in the bank.
Settling down for the evening and some star gazing....Remember you never lose by taking a PROFIT!
The Prophet
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