I have alluded to at least 3 different trends in the market with a 4th visible, it's just so far out that it really makes no sense in confusing anyone with it, in fact even the 3rd trend I have been avoiding, but since I'm getting so many questions on AAPL, I have to address it.
As far as the shorter term charts from 1-5 minutes or so (1-3 min. is considered intraday and market makers, etc, from 5 min up is considered institutional activity) haven't been impressive, in fact there's really nothing to even see there. I usually expect AAPL to lead the market whenever there's a risk on move, no matter how small, but in this case it seems to be more of a follower, but there is something going on in AAPL and some of you may have the disposition for this kind of trade, some of you like me, may want to wait for all of the timeframes to align.
In any case, there's no way to address AAPL without addressing the third trend which I have been trying to avoid until it's appropriate as to not confuse everyone.
AAPL 5 min is about the first timeframe in which you can pick up activity and a rhythm, there are bursts of accumulation and then price is driven back down, in my opinion (considering all of the charts and market averages) this is part of a larger accumulation process for the 3rd trend which would be a strong move up. If you wanted to try to ride AAPL here on this most recent positive divergence then just be aware that it likely will be sent back down in the $520's area as it has been the last several times, each at a lower area.
The 15 min chart is where the AAPL trend becomes more clear, since the fall from distribution in November, AAPL has put in a leading positive divergence, this is a strong base and a longer term trend, it also is not quite ready as the 1-5 min charts are still a mess.
If we go back even further we see the AAPL highs distributed, as early as October there was some accumulation, that may have been used up in the November run and may be separate from what's happening now or it may be part of it, it's really not important. What is important is this is a larger trend for a larger move and it's a bit further out time wise. I believe AAPL will have to see a new low (with the market) before this move up from this base-like area in AAPL can take place.
This is the 3rd trend and I have been avoiding discussing it until it is actionable. You can see it in the major averages as well, take a look at the QQQ below...
A 30 min chart, the same positive and leading positive divergences.
Perhaps this weekend if I can figure out a way to make this many signals and trends make sense and how they interact with each other make sense, I'll try to post the 3 and maybe even the 4th. It would be helpful though to first have the second half of the article, "Understanding the head fake move" as that is essential to understanding how these trends both bearish and bullish fit together.
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