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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hank Scorpio who wrote (15227)	11/20/2013 12:02:14 PM
From: ajtj99	Read Replies (1) \| Respond to of 33421

GT, that is a pretty ominous bearish rising wedge on the AAPL weekly chart you've pointed out. The chart is a bit overbought on some indicators, with a few negative divergences if price did indeed turn down. The trading box for AAPL appears to extend from around $495 to $580, with a minor push-back from $551 possible if it reaches there. The next lower trading box appears to run from about $450 to $505. There has not been a ton of price discovery in the ranges it has been trading, so the trading boxes are pretty large. I think in the current positive seasonal environment, that rising wedge may just turn into a channel, with the upper wedge lines becoming the upper channel lines, and price flagging out to for the lower channel line. We'll see. One thing I've learned early on is "never short a cult". While AAPL is no longer the little company with rabid graphic designers and home users (I know, I hired a lot of them), it is still a behemoth with an extremely motivated base of users, institutional investors. I just don't have the stomach to short something like that on more than an intra-day basis. Do you? stockcharts.com