$AAPL is the reason that this snap back may be for real.

One week ago, on February 8th, I stated that I was going to buy this dip. You can find a link to my blog post here. 

On the same day Karen Finerman on Fast Money gave a Fast Pitch touting AAPL, saying for that she was hitting the BUY Button. 

Yesterday, Warren Buffet, announced that AAPL is now Berkshires largest holding. More about that here. 

Today on Fast Money Halftime the traders were a little dumbfounded by the resurgence of the market, now basically covering 70% of the down draft that started a few weeks ago. 

They said that it was essentially a coin flip about whether or not we keep going back to all-time highs or retest the recent lows. My man, Josh Brown, said a pull back to recent lows under low volume would be healthier than a failed run at a new high. 

But I think that a surge higher is the more likely scenario and I think it will be because of AAPL. 

AAPL hit its all-time high on Jan 18 before slowly falling and was flat to down going into earnings and underperforming market. When SPY was peaking on Jan 26, AAPL was trading about where it is right now. AAPL did bump the day after earnings, but then tanked with the market down to 151 or so on or about Feb 9. This represented a 17% pull back for the stock. 

AAPL is the largest company in the world by market cap, and it represents the largest holding in SPY and QQQ. Buffetts unexpected, indirect, endorsement of the stock has really lit a fire under the name. 

So, although the rest of the market may pull back from here, AAPL has already had its round trip and, I believe, is unlikely to repeat. 

Although when I advocated BTMFD I did not specifically mention AAPL, Karen Finerman sure did, and her call was the right call.  

Sometimes you’re right for the wrong reasons, but it’s all part of the game.