I've heard AAPL accounts for 18-19% of the weight on the NASDAQ 100, NASDAQ wants $10,000 for that information, but from what I know of their proprietary formula, I still weighted all the components and published the results last night. AAPL is at least 14% making it the perfect stock to use to manipulate the market higher. So I looked at the chart, less the market maker noise, and 3C 5 min just showed a drastic change in character for AAPL-perhaps the manipulation of prices higher id nearing an end.
The SPY in green/ AAPL in red, look at the price correlation between the two.
AAPL 3c 5 min version 1-the first significant divergence in AAPL
3C version 2-5 minutes, confirmation and a negative leading divergence. The market makers can still bully it around intraday, but the investment made in AAPL to manipulate the averages higher (1 stock rather then 100 is not a big investment) seems to be closing out.
6 comments:
Even as retail investors and hedge funds sour on the stock market, your mutual-fund manager may be betting on stocks with a far a larger share of his assets than he has in a very long time.
Mutual-fund cash levels dropped to just 3.4% of assets in July--record lows--according to this BoA chart via Pragmatic Capitalism.
Presumably, they're going "all in" on the market, though it could also be partly a function of fund redemptions from their customers.
Says Kevin Duffy:
The fact that Jim Cramer and Larry Kudlow are still employed and bullish is all you need to know from a sentiment standpoint.
Ironically, some of these professionals are making the mistake of confusing relative bearishness among individuals as a contrary indicator and reason for optimism.
I like to call this the "double contrary," a rationalization that was quite prevalent during the last market peak in 2007.
--Gus Lubin, "Mutual Fund Cash Levels Hit Record Lows", BusinessInsider.com, September 13, 2010
Brandt,
On yesterday's GLD post when you said we were possibly at gold's apex and thought it would at least retrace to the beginning of the rising wedge, you meant all the way to the end July bottom in the 113s, right? Just want to clarify.
Thanks
Good sign...transports went red first and the euro is dropping as well. Let's see how this plays out.
Watch the RUT, it is lagging and soon may follow the rest of the market. You might be able to let the market show you where this leads and still catch the RUT through TZA before it moves to much.
Alesund
exactly
Thanks for your quick reply Brandt. I'm loving the site (wish I had known about it sooner).
The thing about gold for me is on a monthly chart, it is clearly a parabolic move. The next move down could be a big one because of this.
In fact, from some of the other things I look at, this could be it for gold for a good while.
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