Pre Market July 2nd 2007

Well in pre market trading Apple is trading down a tad bit. No surprise there. I have been saying that the hype of the iPhone has been priced in the share price leading up to the iPhone release. And now those that were investing in Apple since the first announcement of the iPhone are now taking their profits as they know this is the end of the line for the iPhone hype. Think of the action in Apple today like the action that takes place at the airport. You know those shuttle trains that carry you from the ticketing concourse to the gates, the doors open on one side of the train while the people already on the train exit on the other side. Well that is what will be happening in the Apple stock today. The doors will open on one side of the train and people will leave while the doors on the side will open and new people will enter. Now the big question here for Apple is will there be more people exiting the train then there are new people entering? In the short term the answer is no. That is why we are seeing the AAPL shares trading down in pre market. Over the weekend there have been some negative reviews of the iPhone released and some problems with getting the phones activated are also making their way through the press. All of this combined will add to the "end of the line" for the iPhone hype. What does the future hold for Apple? In my view it is still a good long term hold. There will be short term volatility as people are cashing in their profits and the train slowly fills up with new money.

The week ahead will be light as far as economic data released:

• Monday: ISM Index


• Tuesday: Pending home sales data, factory orders (markets close early on Tuesday)


• Wednesday: markets closed


• Thursday: Initial claims data


• Friday: Employment data

The events over the weekend in the United Kingdom seem to have been a non issue in the markets so far. Futures are up a bit and oil fell a a tad but is still over that psychological number of $70.00. With this being a holiday week expect the trading volume to be slightly lower than normal overall.

Be sure to keep an eye on the new watch list items.