Analyst Dennis Gartman touched on an important, yet brief point in his Gartman Letter this morning. He believes Apple (AAPL) has emerged as a new market leader, along with Amazon (AMZN) and Goldman Sachs (GS). He fears if Apple’s stock dips below the magical 200 mark, all hell will break loose.
Here’s how he describes yesterday’s market action
One by one lesser lights in the market were taken out behind the proverbial barn and shot, although the greater lights… the Apples, the Goldmans, and now the Amazons et al held well compared to the rest of the market. We fear they too may be taken out and shot sooner rather than later, for the margin clerks are now sharpening their pencils and when they do they are merciless. As we like to say, and as we have said time and time again, “When they raid the house of ill repute, the good girls and the piano player too go to jail.”
We shall watch Apple with particular interest, for this has been the true leader of the market over the past many months. Should it falter, the rest will falter too, for when the field General is shot and killed, the men below him scatter chaotically. So long as $200 holds, all shall be well; but if $200 is given… and especially if $195 is given… we’ll fear the worst for Apple and for the market generally. Attention, as we like to say, must be paid.
Right now both the Dow and S&P are up and Apple (AAPL) is floating right below 200 (see chart). What say you now, Dennis?
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