Dead Cat Bounce?

The market had a monumental upswing today. It had several key factors mostly though oil was back up and rising sharply the past two days. Some good earning number, possible Greece debt deal, and okay economic data all contributed. This follows of course a couple of weeks of bad news and falling stock prices. So which way is the market really going to go? Is this just a dead cat bounce where a major fall has started hit the first floor, bounces a little and then just goes right back down and even farther. I do not think it is a dead cat bounce. It might go down some more but in the end this year I think it will be up and reach great heights. We should always keep an eye on the market and be careful about the direction it is headed. 

Let's consider that it is not a dead cat bounce then the people who bought at this level will have larger gains than those who waited until someone else told them it was time to go into the market. If it is a dead cat bounce than the people who buy now will lose money at first. They can always recover it but it is difficult to recover losses. So it is always as previously stated a risk to buy into the market but one that consistently pays off with a well diversified stock picking. 

So I'm going to say that this current uptick is not a fake bounce. It is a strong uptrend that will continue. 

Apple is a Huge Company

I saw a tweet earlier today that said that said you could add Exxon and Wal-Mart's market cap together and you would get to the size of Apple's market cap. That is crazy big! Apple got to be worth 700 billion dollars today and I can see with just a few more years and a few good products could be worth 1 trillion. There is also just a huge gap between the largest and the second largest company. I think it means that other companies will grow in size too.

I think it will also mean that Apple will be put into the DOW there is just no way they can ignore such a large company. And the reservations in previous years about the stock price has been fixed. Since the DOW is averaged from price last year when Apple would get put in at $600 it would add several hundred points to the DOW. It was too much of a shift. Now taking away a smaller company and adding Apple would probably increase the DOW's price but not in such a huge way.

If the DOW does not add Apple they are ignoring the goal which is to include the largest companies in the country. Apple will get added and then the price will go up again because more people will need to hold Apple to follow the DOW. Maybe Cisco or Coca-Cola will get bumped. Those are possibilities. We will know soon though.