lower as the fiscal cliff negotiations are set to begin between President Obama and Congressional leaders. The market has been under pressure since the election amid fears that a stalemate would trigger $600 billion in tax hikes and spending cuts that could plunge the US economy back into recession. The major indices are down around 2% for the week.
In addition to problems at home, there is nearly a geopolitical worry for each continent. Europe’s debt crisis continues as Greece seeks another round of aid. In the Middle East, Israel and Palestinians in Gaza appear on the brink of full-out war. And in China, uncertainty exists over the nation’s leadership transition.
While the market was able to stop the bleeding yesterday afternoon, the action remains very heavy. All major indices are below their 200-day moving averages and leading stocks continue to break down. Apple (NASDAQ:AAPL) most notably can’t seem to sustain any kind of bounce. Yesterday it broke lower out of its mini lower range and broke key support around $528.66. AAPL looks set to open around that level this morning, and it will be important to see whether it reclaims it.
3-D printing company 3-D Systems (NYSE:DDD) will respond today to recent articles questioning its accounting practices, insisting that all filings are accurate and up to date. After breaking out to new highs two weeks ago, the stock pulled in sharply follow the reports. The stock is up sharply pre-market, and traders will be watching it for a potential bounce.
Dell (NASDAQ:DELL) is down around 1.9% pre-market after a mediocre earnings report last night. PC sales plunged and the company reported a 50% drop in profits. The move to smaller devices like tablets and smartphones as hampered PC-based businesses, and Dell, like Hewlett-Packard (NYSE:HPQ) has struggled to cope with the shift.
Take it slow on options expiration Friday as we could see some pinning action. Today would be a good day to get started on our Free Online Trading Course!
Mike Lee began his trading career in April 2000 and is now the head trainer at T3 Live. Since joining T3 in 2004, Mike has become one of the firms most consistent and profitable traders. He employs a disciplined momentum approach. With a strong mind and passion for the markets, Mike is a master of the psychological aspects of trading. A technical analyst who thrives on managing risk and fast execution, he separates himself through his mental approach. Mike places a strong emphasis on money management and not giving back profits. Since becoming head trainer, he notes a significant improvement in his own trading as mentoring others has helped reinforce patience and discipline. No matter your level of experience and success, always work to improve your trading mindset.
Mike is currently a registered T3 Trading Group, LLC Associated Person and T3 Live Contributor
*DISCLOSURES: Mike Lee has no positions