What Did I Tell You About Apple?

On Thursday, September 23rd, I wrote:

This all stinks of distribution. I wouldn’t buy Apple here with Larry Kudlow’s money.

What happened next? KABOOM! That’s what.

Apple had one more up-day, rolled over, and it’s been all downhill ever since, complete with a mini “flash crash”. I made my comments at the blue arrow on this chart (click to enlarge):

Notice how AAPL was rocketing straight up in an unbelievable parabolic rally, until I jumped onto the tracks and stopped that speeding locomotive Superman style. And I didn’t use technical analysis to do so. Or fundamental analysis. I just sniffed out the BS on CNBC.

How about that?

Now, look at the red line and red arrow on the chart. $279.01 was the top tick of the June rally, and Apple closed below that level on Monday. In chart-land, that is considered improper etiquette.

I suspect $279.01 will be an important level for Apple, and the rest of the market this week. Is Apple only fooling us with a false breakdown, or does it intend to correct further?

I don’t know. I’m back in Clark Kent mode now.

Note: A few hours after I published this, the Bank of Japan went berserk and flooded the world with gazillions of yen. That inflated our stock market, and Apple rallied over $10 the next day, though it did fail to make a new rally high along with the rest of the market.

24 thoughts on “What Did I Tell You About Apple?

  1. “You don’t tug on Superman’s cape
    You don’t spit into the wind
    You don’t pull the mask off the old Lone Ranger
    And you don’t mess around with Jim, da do da do…”
    (Jim Croce)

    Revised Version: 🙂

    You don’t tug on Superman’s cape
    You don’t believe Kudlow’s crap
    You don’t pull the mask off the old Lone Ranger
    And you don’t mess around with Matt, da do da do…
    (Georgie Porgie)

  2. I guess I’ll have to breakdown and check the news. Maybe free turkeys are going to be handed out by the Fed for Thanksgiving.

  3. That’s a nice intraday gap for SPY but not on the daily from what I can tell. The tally is 3 gaps to the downside and one intraday remaining above.

  4. October could be another block buster?

    Should be a counter move soon. Negative divergence on SPY 5min – doesn’t mean much unless it is confirmed by the 15min or 1min MACD going to zero.

  5. G, bad news=go up, good news=go up…Bernanke Put is in place and there is no down any more. Nice bear trap yesterday…bears fumbled the ball big time. Thank goodness I just drill, fill, and bill….GLTA.

  6. 2th,

    You got that right. It’s people like me that buy those dips that’s causing all this fuss. BUT, the fall will be magnificant. 🙂

  7. I think Phil is on vacation with all the $$$$ he has pulled from the market in the last month. He may be flat actually…

  8. I’m hoping for a closing reversal but whith this strength, SPY may bounce off it 15min 9MA and close higher.

  9. How are Matt’s bulls v. bears looking now!

    I decided to “semi-retire” a few months ago, spent my time since then
    working my tail end off.

  10. Randall,

    Ain’t it the truth. Retirement for me has been busier than ever. I suppose it’s because there are soooo many things we want to do that we never had the chance to do while “working” at a place of employment.

  11. sold all of SCHX i bought in the gap up this am

    probably is 3 of 3 upward explosion

    taking my profits now in case it is a B wave ( doubt)
    spy hitting daily bollinger band

    1172 is next target

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