That All Ya’ Got?

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AAPL soars, market soars.  AAPL plunges, market yawns.  Sure, makes sense to me.  One can only guess as to how much effort went into propping up the markets this morning in the wake of the earnings miss.

Have you ever heard so many laudatory comments about the stock everyone loved to hate only months ago: NFLX?  Gotta love it.

Regardless, AAPL has gone exploring spelunking lower Fib levels and the rest of the market is up, which presumably means we’re presently on the right side of the market.

AAPL should firm at 450.85 this morning — the 1.618 of the Crab pattern dating back to Nov 16 at 505.75 (light blue.) Personally, I’m an enthusiastic buyer at these levels (with stops, of course.)  I previously set the large white pattern Point X at 354 on Oct 4, 2011.

But, moving it to the June 20, 2011 310.50 level (just as legitimate, if not more) means AAPL just tagged the .618 retracement of the 310-705 move.

 

But, the biggest reason of all to be short-term bullish on AAPL is the purple channel — the bottom of which AAPL just tagged. The stock could certainly fall below it, but this sucker dates back to the year 2000.  I have a hard time believing the channel will fall after what amounts to a minor estimate miss.

Does the company have problems?  Sure.  I worry about the obvious decline in customer service and a slowing product cycle.  But, it also has the means, the manpower and the motivation to fix what’s ailing the stock price.

Stay tuned.

UPDATE: 1:15 PM

The markets have sold off from their highs, but seem to be finding RSI support.  APPL is, doing the same.  For those who find the bounce idea compelling, here’s another chance.

 

UPDATE:  1:50 PM

Watching to make sure the price channel and RSI channel both hold on SPX…

Comments

That All Ya’ Got? — 6 Comments

  1. Hello PW, last Friday, you showed the CL, DX and SPX charts.   Maybe I did not understand correctly, the Friday’s SPX chart implies that it is going to decline (as to sync with the rate of decline with CL)    Regardless, it seems like the current trend (short term trend) is up as SPX is targeting 1515 or even higher.  And where is Friday’s SPX chart coming in play then?   Thanks!

    • I am bearish now as I was then.  But, in the last couple of days I saw the potential for the market to move slightly higher first, posting it yesterday.  Note that SPX and CL are moving roughly in sync now, and the currencies have been pretty flat since then.

    • I think the currencies are mostly going to ride out this last 10-15 pts
      up in SPX — probably form an ascending triangle.  AUDUSD is finding
      channel support.