I was looking over several charts this past weekend and I was shocked to recognize a chart formation playing out before my very eyes. I've seen this same formation a million times before, but I just didn't want to believe it could be happening to my favorite stock, Apple (NASDAQ_AAPL). Some would call this denial.
In the past I've written extensively about Apple products on this blog. If you have read any of these postings, you'd know how crazy I am about their products.
Several months ago I discovered a major technical formation that spelled trouble for Apple. I have to admit that I was saddened by this. This formation was also picked up by our "Trade Triangle" technology. Our algorithm triggered a sell signal and has continued to suggest a short position for Apple all this time.
I was surprised that we've seen this market come down so easily. It seems like every time I visit an Apple store they are always busy and their products always seem to be selling well.
The question is, are we at the end of the iPod era?
Given the chart formation, the double top and pivot point, it seems we are headed lower. The Pivot Point measures down to the $40-$50 range and Apple at $90 still has a long way to go on the downside.
What caught my eye this weekend was a weekly continuation pattern to the downside and the fact that Apple closed at a new weekly low for the year. This is not a bullish sign by any stretch of the imagination.
For this coming week, I expect to see further downside pressure on Apple. I believe that we are going to be looking at the $50-60 dollar range as our target zone. Of course everything within will be tempered by our "Trade Triangle" technology. When our short-term "Trade Triangle" turns positive, we will close out short positions and take to the sidelines. In my opinion, it's going to take some time for this market to improve and turn around. The technicals are just too weak at the moment.
Every success in trading,
Adam Hewison
President, INO.com
Co-creator, MarketClub
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Jeff,
Thanks for your feedback. You must be a video or two behind. We had a buy signal for apple 3/23 at 103.60.
Thanks,
Adam
Is apple still going to 50-40
Is apple still going to 50-40?
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Jeff,
Thanks for your feedback. Our stops this week on Apple or 95.10 if Apple moves over this point we will cover our short positions but not go along with this market.
Our downside target of $50-$60 for Apple remains in effect. However there needs to be a breakthrough into new lows to be made soon in this market if we're going to see that target. A move over $112 on the upside would be a very strong bullish signal for Apple and we would absolutely abandon our $50-$60 target zone at that time.
If we see Apple move over the $112 level then we will more than likely get long and start trading Apple from the longside.
I hope this answers your question.
All the best,
Adam
Is your call in the 50-60 dollar range still good? Does not appear to be.
please give me some durable goods names. thanks bob
What you failed to mention in this article is the fact that ALL electronics companies are posting lower profits. With the lessening strength of our economy and yes, let me say dereseeion, we are going to see all stocks plummet.
This will be realized by the general public and the uninformed stockholders of this country when the retail sales figures for the month of December come out in January. Then we're going to see the market fall and continue falling into the 5-6 K range. This trend will continue for about 2 years until the economy turns around.
As for stocks to invest in now? Look at companies that manufacture replacement parts for durable goods. People won't have the money to replace equipment, but will have the money to repair the old.
Steve,
Thank you for your excellent comment.
All the best to you.
Adam