Growing fears of a Greek default sent both the S&P and Dow tumbling on Monday as investors fled the market with abandon.
However, on the very same day shares of Apple made another new high.
”Forget gold and Treasurys, the safe haven has become Apple,” says an enthusiastic Fast Money trader Pete Najarian.
Although Najarian is being dramatic to underscore the strength in the stock, if you look at the recent correlation between the tech titan and the S&P, you might honestly think it’s become a safe haven. There’s been a clear divergence – with the S&P tumbling as Apple climbs.
And according to Najarian it seems likely that even more money is about flow into this stock.
Looking at the weekly call options he sees strong volume in the 405, 410 and 415 calls. “That suggests options traders expect Apple to go higher very soon.”
And he doesn't think Apple is just a momentum trade. Najarian believes the fundamentals also support the thesis. “They own the tablet market. They own the phone market. And they’ve got all that cash,” he says. “All cylinders are firing.”
He goes on to say that JPMorgan has a $500 price target on the stock. “That’s not unreasonable,” he says. “Apple could trade $500 before the end of the year.”
