Dark blue lines created islands, now Apple is on an island of an island. The rising wedge, overbot conditions and negative divergence should spank her down now probably to that gap for the island at 580 and higher. A drop in price back down thru the gap from 580 directly down to 570 would be an island reversal pattern. Note the previous rising wedge we watched in February. It created the expected spank down but note how the MACD line was long and strong (red circle) and wanted to see higher highs in price one more time. Price came back up to satisfy the MACD line and the indicator printed another higher high wanting to see another price high. All this drama ended today, now all indicators are satisfied with negative divergence so it is time for the smack down. The weekly chart wants to see another matching high after a spank down so a move shown by the black line is projected, down to 570-590 then a bounce then roll over.
But first step is first. Keystone shorted Apple stock today. This daily chart serves as an example for the broad indexes and many other leading stocks. Most show the same negative divergence so weakness would be expected in the broad markets. Note how volume kept increasing into the creschendo two weeks ago but that high buying volume candle was not higher than the selling volume candle from February; a move down to 500 is probably in the cards in the weeks ahead. Apple is the markets. Let's see if this intial spank down occurs first over the next few days. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.
you've been calling for spank down from overbot neg div for the past month and shorting every step of the way while the market kept climbing. You are losing lots of money. Get it into your head, benny eroland heads want the market to go up. don't fight it.
ReplyDeletehere are your calls for the past week or 2... short aapl, long tvix, long nat gas. what happened so far. all wrong.
ReplyDeleteaapl pre market up 3 more bucks. you lose.
ReplyDeleteHello Anon, you are correct in that the previous spank downs were called as the negative divergence was set up but Keystone's entry short here on the last run is now at 617 and higher, no entries before, study the chart closely and how the MACD line behaved.
ReplyDeleteHello Anon, yes, you are correct but study things in a larger context. Reference the Positions and picks page so you can follow along better. For the core postion, traded by the algo and reported in the margin, think of that as the large ocean liner that is being steered thru the trading year. That is, or was until a short time ago (this is Wednesday noonish), on the long side. The shorter term work on this site is concerned with highly speculative and dangerous trading including divergence trading and calling tops and bottoms which should be typically avoided by most traders. True that the long volatility and long natty trades are under water, and deeply, long TVIX was a great trade, that was exited before the trouble, still holding VXX. You will have to do a little more homework, pour yourself a cup of coffee and reread the last two or three weeks including all the supplemental page links.
Hello Anon, yes, AAPL was up pre-market, current print is flatish at 615. We'll see if she rolls over due to the negative divergence over the coming days. Sounds like you are long Apple by your comment; can't say good luck to that since Keystone is short currently.