Apple & Utilities are Rallying - Risk On?

Have you seen Apple stock lately? Well, if you haven't here it is...

Apple has rallied 35% from the June low and is trading less than 5% from its all time high. However, bears could argue that technically it's still in a down trend (dotted line) and could be putting in another lower high. 

Lower high or new all time high aside, Apple is a powerhouse and widely held with a massive weighting in most funds.

  • Largest market cap in the world at $2.8T
  • 7% of the S&P 500
  • 13% of the NASDAQ
  • Warren Buffett likes it - Largest holding in Berkshire Hathaway at 43%

But what is Apple stock saying about risk taking in the stock market? Does strength mean "risk on" or is Apple more of a flight to safety or safe haven?

Speaking of safe havens have you seen utilities? As a sector they are trading at a new all time high.

When I think about what a "risk on" market looks like, utilities doesn't come to mind. I prefer to look for leadership from transportation stocks, financials, semiconductors, and growth for signs that investors are more comfortable taking on risk. And these sectors still have a lot of work to do in order to get back to new highs. 

What do you think? Is the appetite for risk back with Apple rallying and utilities making new highs? Or are investors hiding here while riding out the bear market?

Let us know what you think.

We'd love to hear from you.

Greg R.

SIGN UP HERE to receive Profit From Trends Free directly to your inbox once a week.

Follow me on Twitter @gregrieben

Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.