Volatility continues to pick up. We’re seeing bigger prices swings for stocks, in BOTH directions.
But of all the things I’m seeing out there, this former darling, and market bellwether absolutely has my attention.
On Thursday, Apple went out a yet another new low relative to the rest of the market. Here’s what Apple looks like vs QQQ:
This is a completed top and potentially disastrous break.
The next chart below is what Apple looks like vs the S&P500 and the absolute price laid over it.
$AAPL stock has been falling all year, despite what some of the indexes have done during this period.
It’s not just the declining new highs list that we’ve seen the past 2 months, the next question is do we see an expansion in new lows?
We discussed that already yesterday.
I’m old enough to remember when Apple was the most important stock. Now we should just forget about it?
Also it’s not just Apple that is vulnerable, it looks like the whole sector can come into some serious pressure over the next few months.
Look at the momentum divergence in the Technology relative strength:
We’re looking to put on Short positions in both Apple and Dell.
The details of these trades are listed below.
There are some positives in this market and there are some negatives. There are also a lot of questions and divergences that I think need to be resolved one way or another.
So I’m acting accordingly.
I know many of you have been asking, so to be clear, this is exactly what I’m going to talk about next Wednesday at 5 pm in my one-day-only live Technical Analysis Bootcamp.
This LIVE 3-hour Technical Analysis Course is going to be straight knowledge, no BS. Just me and our process for identifying trends and turns in the market.
Do you want to know exactly how we find our best trade ideas? Are you curious as to why we were so bullish of stocks the past 18-months, and only now is when we got more cautious?
CLICK HERE to sign up. I’ll see you in there!
JC
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If you have any questions on any of these trades we like, please shoot us a note.
Remember, everyone has different time horizons, risk tolerance and overall objectives.
Even within our own team, even if we agree, we’ll usually all execute in different ways. Steve tends to be more short-term aggressive. Sean tends to be more conservative. And I’m usually somewhere in between. But even that changes sometimes too.
So remember that what someone else might be doing because it’s best for them, doesn’t necessarily mean it’s what’s best for you.
Hope that helps!
JC
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