The Apple Complex

That was quite a rally yesterday. A big drop in
new unemployment claims, some pretty good retail numbers from February,
and some hope that the Libyan situation may be nearing an end, bolstered
the good vibes from Wednesday’s ADP private payroll report and sent stock
flying higher.

The entire “Apple Complex” of did pretty well,
too…

The “Apple Complex” is an
open-ended growth story. When you start to imagine the potential of
global penetration for this new generation of devices and services, you
can get some pretty staggering numbers. That means we can use these
stocks as bullish indicators.

How to Play Middle East Unrest

Once again, China has raised reserve
requirements for banks to slow down lending and, hopefully, slow
inflation, too.
China reports that inflation accelerated to 4.9% in January. Part of
the reason is that drought has damaged
China‘s grain production and
food prices are up.

Chinese banks lent $158 billion in January. That
was more than double the rate of lending in December. Apparently, lending
typically surges in the early months of the year in
China.

Investment Angle: Apple to Release Cheap iPhone


Apple recently announced that it is currently working on the next
generation of iPhone. This new phone, code named N97, will be available
to more carriers than the current line-up of just AT&T and Verizon.

The new iPhone is anticipated to run at about half the cost of main
iPhones currently on the market and to be more in line with comparable
competitor models.

Cisco, Apple and the Nasdaq

For an economy that has been highly dependent on
government and corporate spending, Chambers’ outlook wasn’t very
encouraging. But on a day when Cisco was pounded for around 15%, and Google
(Nasdaq:GOOG), Microsoft (Nasdaq:
MSFT) and Apple
(Nasdaq:
MSFT)
all finished in the red, the Nasdaq as a whole actually posted a
gain.

Now, Apple alone accounts for 20% of the Nasdaq
100 (the 100 largest stocks on the Nasdaq). Throw in Google (4.2%),
Microsoft (3.6%) and Cisco 1.6%, and you’re looking at 30% of the Nasdaq
100. Nearly one-third of the Nasdaq 100 was lower on Thursday, easily the
most influential tech companies, and the Nasdaq managed a gain for the
day.