All that coin rattling you heard today was the sound of money falling into the pockets of tech longs. Tech-heavy indices such as the Nasdaq Composite and NDX were up 1.5% and 1.9%, respectively. The SOX tacked on 2.5%. A few technicians I know were predicting such a move, particularly in the semiconductors. I didn't believe them, but I didn't bet against them, either.
The most impressive gain on my screen came from Apple Computer. Apple shares leaped nearly 6% on monster volume. I didn't see any news to instigate such a move, so I can only assume it was a technical rebound. Many people also consider AAPL a bargain after the shares got sliced by a third from the January top. Bargain or not, I no longer need to lament covering my short last week. With a free mind, I can now begin seeking a new point to sell the shares again.
Okay, so not all the coin rattling today emanated from the pockets of techies. A good amount of it came from commodities trading pits in the form of silver. The white metal gained 2%, topping $11 for the first time in 23 years, and finally managed to drag gold up with it. As readers know, I've been stuck with only a base position during the last few weeks. Obviously, I've missed out on a nice run for a trading position. However, these developments illustrate the value of maintaining a base position in a primary bull market.
Oil also picked up nearly a percent when we learned that gasoline stockpiles fell more than anticipated. But rises in oil and other commodity prices failed to dent the dapper mood on Wall Street. In fact, it seems the mantra for today was simply to be long something... anything! Liquidity certainly isn't lacking one day after rate hike #15.