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1-27-10 Morning Market Update

|Includes: AAPL, Cord Blood America, Inc. (CBAI), GILD

10:01am  (originally posted on Kudrna's Stock Market Blog)

The market is trading down this morning as the buyers wait on the sidelines and the sellers continue control.  New home sales numbers were not too good which doesn’t help the bulls.  The Shanghai Exchange was down yet again (down 1.58%) and that puts more negative sentiment on us.

Biotech is up as Cord Blood America, Inc (OTCPK:CBAI) is trying to stay in the green for 2 days straight which is much more than most stocks out there can say.  I’m waiting on a pullback before I buy more…I have a solid position in CBAI at a great cost average so I do not feel the need to build it up more unless prices drop more.  Gilead (NASDAQ:GILD) reported a great quarter and is up over 6% as I'm writing this so I’ll be responsible and pare back some shares to lock in gains while the market figures itself out.  Nothing wrong with sitting in a good amount of cash right about now with the potential downside we have.

Apple (NASDAQ:AAPL) releases its tablet around noon central.  It is currently trading around $203 which to me says this information isn’t priced into the stock.  I’m still hopeful for some Verizon-Iphone news as well but haven’t heard anything recently about it…that could be a nice wildcard for the stock if it is announced today but I’m not holding my breath. With the poor market activity, it seems we have a sell-the-news type potential that traders are expecting in AAPL.  I think we will get a small spike to sell into though and I’ll be looking for it.  Than I hope to buy back some shares lower as the more I look into AAPL, the safer I feel in putting my money in them long term.  They put out a conservative guidance which makes me feel they won’t set themselves up for failure.  But lets be real here, AAPL has a proven track record of success.  UFC may be as real as it gets but so is Apple.  I feel my money is safe long term in AAPL.  I even had the opportunity to watch Cramer this week and he seems to agree.

Protect your capital until we get some more clarity.  I still think we end the week with sellers in control.  Good luck out there.

Mike



Disclosure: Long CBAI, AAPL, AND GILD