One of the strategies to tell the speculators that they’re screwed with their greediness in making money by jacking up the oil prices is to boycott them. How? Use less fuel or stay at home. That’s precisely what happened during the Memorial Day when analysts predicted that people were going out less and with the summer driving season just started, the consumption of gasoline is closely watched. Oil prices plunged more than $3 to below $129 a barrel.
Almost instantly, investors were betting that the sharp drop in oil prices will help shore up consumer spending – sending shares higher including technology stocks such as Apple Inc, (Nasdaq: AAPL, stock), Google Inc. (Nasdaq: GOOG, stock) and Baidu.com, Inc. (Nasdaq: BIDU, stock). On the Nasdaq, Apple shares climbed to $186.43 while Google shares rose to $560.90. Baidu on the other hand closed at $336.50 well below the resistance of $350.
AAPL appeared to have breached the resistance of $184 (now becomes the support) but below the $192 level. It was most fun to see how AAPL hovering around the $184 level yesterday and only after 2:45pm did the stock managed to gather strength to push up above $184. The RSI is gaining momentum and the MACD is about to cross (hopefully). I’m sure lots of investors and traders would love to see Apple cross the $200 a share again. However if you’re holding any Call Options, it’s wise to unload in stages if the stock reaches $192 resistance. The whole damn stock market is still as volatile as before.
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