Hello MarketClub members everywhere. Well, here we are at the end of one extraordinary week for the equity markets. I don’t remember a week where we watched the major market indices rally so dramatically from a bearish position in just three days.
In today's post, I'm going to be looking at the big 3 A's, Alphabet, Amazon and Apple. What these three stocks have in common is that they are all in downtrends and they all formed a negative (bearish) engulfing line yesterday. Should any of these three stocks close lower today, they will confirm that the high on Thursday will be a formidable resistance area for these stocks to overcome in the future.
Alphabet Inc.(NASDAQ:GOOG)
Trade Triangles: Weekly red, Monthly red, overall trend is bearish, trend strength -85.
Alphabet has a negative trend at the moment even though it has been extraordinarily strong in the past several years. It's not to say that it's going to hell in a hand basket, but rather it will begin to reflect a slowing economy that is evident in both the retail and dining sector. I would view a close below $697.34 as a confirming signal that it has put in an interim top and is going to retest its recent lows.
Amazon.com Inc. (NASDAQ:AMZN)
Trade Triangles: Weekly red, Monthly red, overall trend is bearish, trend strength -85.
We all love Amazon for its great services and Jeff Bezo's secret quest to take over the world. But like Alphabet and Apple, Amazon created its own negative Japanese candlestick formation yesterday. The bearish engulfing pattern occurs when selling pressure overwhelms buying pressure as reflected by a long red real body engulfing a small blue real body. If this stock closes lower than yesterday's close of $524.68, I would expect to see further downside pressure next week.
Apple Inc. (NASDAQ:AAPL)
Trade Triangles: Weekly red, Monthly red, overall trend is bearish, Trend strength -65.
Well first off let me congratulate Tim Cook for standing up to the government and saying no. You may agree or disagree with his stance, but imagine if there were no privacy whatsoever. This in and of itself would be pretty scary and have shades of big brother watching you. I say kudos to Tim Cook for having the courage to stand up to the government. Okay, enough of that. Yesterday Apple created the same bearish engulfing pattern as the other two stocks I have just covered. Again, should it close lower than $96.18 today it would confirm a top and indicate that this market has not finished moving to the downside. I still have a target zone of around $70-$75 for this stock.
Stay focused and disciplined.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
very educational and informative. keep providing this type reports. thank you.