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Wednesday, June 13, 2012

Market Thought... firming up

Seems like action is firming up at current levels. 

The activity is supported by a slew of individual names (including JPM, GS, AAPL etc), but technically more significant its supported by the Semis.

JPM is interesting here, with its reverse head and shoulder set up. It looks like it wants to push toward 37-38. Looking to add near morning weakness, around mid 32. (If negative sentiment takes JPM, it could go to 31, maybe even lower pending negativity. But at current levels JPM is discounting a lot.)

I am still trying to figure out why all financials are still trading 20-30% below book. With the threat of bank runs off the table and assets from US housing that are viable again, US banks should be trading near book. Looking for GS to test 110, once it breaches current negativity.

AAPL is sitting on support and came off of its oversold condition. Seems to be favoring a continued push higher from here, but if AAPL decides to breakdown it will most likely re-test 530.

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