Aaron Marz's  Instablog

Over the past two weeks the U.S. domestic markets have been getting pummeled by across the board selling and falling sentiment. During extended sell offs, like the one we are experiencing, it is important to understand "The Bounce" that typically occurs when a market gets over sold. In its simplest form this is buying that happens because a market has fallen "to far to fast". These bounces can be good opportunities for educated traders and investors if they are able to identify the timing of when a market will "bounce" or correct.

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The above image shows our Sentiment chart of the S&P500 over this period. From Nov. 7th until Nov. 13th we were in a negative and falling period for sentiment, but starting on the 14th the average weekly sentiment started climbing again. This was a strong indication that the atmosphere surrounding the S&P500 was starting to stabilize. As a result we saw the market put in a near term low and begin to move upward again.

This concept of "The Bounce" was covered by Jim Cramer last Friday regarding the positive move in Apple. He does a good job in explaining this concept and further confirms our previous post regarding AAPL's current price. See the Video

Disclosure: I am long SPY.

I think that we can all agree that owning Apple has not be favorable lately. A year ago I heard several predictions that AAPL shares were going to hit 1k. I called bs. Now I am hearing predictions as low as $400. Again, I am going to call bs. Sure AAPL shares were overpriced and that glass has somewhat shattered, but the company still has some solid assets. Using Crowd Prospectus, we can see that the tenure tantrum has died down and people are beginning to resume their Apple fanboy status.

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If you think that this stock still has potential and you are looking for a good deal, right now might not be a bad time to get in. This might not be the true bottom, but it is definitely better than buying shares two weeks ago.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AAPL over the next 72 hours.

Over the past few days, I have been following American Express. With all the buzz around Hurricane Sandy, this is definitely one company that has been overlooked. Last week this stock got hammered, which appears to coincide with the market; however, after the initial shock, the sentiment for AXP went back up to being overwhelmingly positive.

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Amidst all the market shakiness, this might not be a bad stock to add to your portfolio. The jury is still out for the long-term, but right now people are very excited about this company.