Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
The unthinkable happened today! Apple shares fell over 2%. I am shocked!
What will happen to all the Hedge Funds who are charging their clients 2 and 20s. Almost every hedge fund or any fund for that matter is loaded with Apple stock. If there is a disappointment on Wednesday with the new IPad 3 release, the exit doors may prove to be too small.
News of the day was the reduction of growth forecast from China. Once again, I fail to understand the fascination of the commodity sector with everything Chinese. Don’t they know that every figure that comes out of China is made to order to please the politburo? How can anyone believe any number coming out of China in the 1st place and develop a trading strategy? Anyhow, the prices of copper, gold and silver fell along with equities. Nasdaq was the loss leader with 0.86% loss.
After today's close, the only one that has begun to trend downward on this timeframe (according to the Heikin Ashi definition) is the TF (as there is no upper shadow on today's bearish red candle, which reflects strong selling). Based on this method, the TF has broken its Daily uptrend, while the other three e-mini futures indices are consolidating and show indecision (as there are both upper and lower shadows)…today's red candle will need to be confirmed tomorrow by a flat-top red candle to confirm that the uptrend has also been broken on the YM, ES & NQ.
Subsequent Daily flat-top candles will then need to be made on all of them to confirm continued strong selling pressure.
Today's sudden weakness in Apple (AAPL) that has pressed the stock from 547.48 to 526.00 has inflicted damage to the nearest-term uptrend off of the Jan 25 low at 419.00, which cuts across the price axis today in the vicinity of 533.40.
Let's notice that the weakness violated the trendline, but has since climbed back above it. Today's close in relation to the trendline will be very important technically. In addition, we cannot help but notice the very negative juxtaposition of my 4-hour RSI gauge with the price pattern, which continues to warn me that at just about any moment AAPL could roll over into a sustained plunge that revisits the prior corrective low at 488.50 on Feb 10.
Mixed data released today shows that ISM Non-Manufacturing PMI rose, while Factory Orders declined, as shown on the graphs below…conflicting messages for a second month. Take your pick as to which one you like!
Whatever the news or headlines that may be approaching, the charts speak for themselves.
Let's take a look at the Russell 2000 first. The Russell has yet to breach it's 2011 high, remaining underneath the downward sloping trendline coming off the 2011 top. It also shows a beautiful 5 wave pattern down from May 2011 – October 2011, followed by an A-B-C correction up from October 2011 – February 2012. Notice the double negative MACD divergence showing. Daily stochastics are becoming oversold, so I would expect selling early this week, a test of the trendline coming up off the October low, and then a modest bounce before heavy selling begins.