AAPL trends

Apple released stellar earnings yesterday, shooting it to new highs since it started uptrending a few months ago. I think this pop won't last, and we will start seeing a new downtrend soon.

The above 10-year weekly chart of AAPL shows that price is hitting very long-term resistance. The trendline has been controlling price action for the past couple years. The fact that we've seen 7 weekly gains on drastically decreasing volume tells me that we're due for a strong pullback, especially in the proximity of this trendline.


Anonymous said...

Hey narayana,

I see you're still attempting to swim upstream with the other salmon. And we all know what happens to them after they arrive at their destination.

Don't know about you but it feels a lot like trying to constantly catch the falling knife when the market was endlessly plummeting not all that long ago, just flipped upside down now. You could have made some serious dough if you were willing to book lots of small quick profits intraday.

Just buy back shorts that work really quickly or watch them flip upside down on you. They're not letting you sit and watch the profits roll in over time these days. Take it and run if you're playing the short side.

Narayana said...
This comment has been removed by the author.
Narayana said...

Anonymous, you gotta short the rallies in a bear market, no? Why would I post bullish projections when the market is severely overbought and the public consensus is that the economy is bottoming? If you look at my previous post, there is plenty of distribution in this market. But thanks for your feedback!