Individual stocks are not our focus here at ForexLive, but I have some thoughts that are somewhat applicable to currency markets…
Steve Jobs latest health problems are being discussed ad nauseum in the popular press. All the talking heads are lining up behind the “buy the dips” camp as two prior medical leaves have resulted in stick pullbacks followed by rallies after Jobs returned (and new products were released).
I’d be very, very cautious of that view. Stocks are part earnings moment and part magic. Take away the “magic” at Apple (Steve Jobs) and it could easily turn into Microsoft or Dell, two stocks that dominated the 1990s and have been far less magical in the 21st century.
They are still good companies, produce products that are in demand, but they lost their magic and will likely never get it back. The same could easily happen to Apple, with or without Jobs…
In currencies, we the market fall in and out of love with currencies all the time…The love affairs are much shorter lived than they are in the stock market. But once the magic is gone, it is hard to get it back…
