) were making their presences known at the CES (Consumer
Electronics Show), and
) continues to impress, many market pundits and observers spent the
first half of the week all but heralding the death of Android.
Fittingly, shares of
) were in pullback mode, selling off for three days in a row, and
trading within a dollar or two of making it four in a row on
Tuesday. The stock has since been trading sideways after the
dropped GOOG into technically oversold territory for the first time
since late November.
And while Google may have more room to trade lower (the stock's
big dollar value alone a tempting target for investors looking to
trim), the fact that the stock has already retreated to 10-day
closing lows (Monday) means that a growing number of traders will
be looking for opportunities to buy discounted shares.
What is interesting about Google is how it may anticipate a
in Apple. Like Google, shares of Apple have also recently rallied
to significant, new highs. And, predictably, traders in Apple have
begun to do what traders and investors in Google have done: take
profits and lock in gains.
The question is whether or not the selling in Apple, which has
finished lower for two out of the past three days, will provide a
clear pullback opportunity - as the pullback in Google did - or
will instead continue to clip higher, becoming even more extremely
in the short-term.
Heading into trading on Thursday, Apple has a modest, positive
edge of just under half a percent. And after opening with a
"consider avoiding" 3 out of 10 rating on Wednesday, selling in the
stock has helped moderate AAPL's rating to a neutral 5 out of 10.
And while a 5 out of 10 is still some distance from a "consider
buying" 8, 9, or 10 out of 10, the two-point intraday upgrade in
the stock is a hint of what could happen if additional
profit-taking enables AAPL to trade even lower over the next few
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is Editor in Chief of TradingMarkets.com.