Monday, November 26, 2012

AAPL / NASDAQ /QQQ

Since AAPL holds about 20% of the NASDAQ 100's proprietary weighting (for the exact weight you can get a NASDAQ yearly membership for $10k a year and I'd love if you shared the weighting schedule with us all if you buy the membership) and that is about equal the 50 stocks that have the lower or lowest weight combined, AAPL is a significant force on the NASDAQ 100/QQQ.

While both have been showing signs of negative divergences today (thus the reason I feel fine holding AAPL puts for now), AAPL will have to break for the NASDAQ/QQQ to really give in to its divergence and AAPL has a divergence I believe that will force it to break and give in to a pullback move.

So here's probably the two most relevant assets right now and their signals, the Q's and AAPL.

ES I should mention is starting to show a 3C trend, it's not pretty as we expected Wednesday and the NYSE TICK is finally hitting some extremes around -1200

 AAPL 1 min

 AAPL 3 min starting to lead negative a bit more, at a certain point it should just break to the downside.

 AAPL's 5 min trend, also the reason for taking a short term position short AAPL (puts).

 And the intraday view of the 5 min chart for AAPL today, also starting to lead negative more deeply.

 QQQ 2 min in a deep leading negative position on an intraday 2 min chart....

 The more important 5 min trend showing a recent leading negative divergence, agains still along the lines of a pullback, not a serious threat to the move up that has started and I believe will continue in what we might cal a sub-intermediate term.

The QQQ 5 min intraday looking pretty bad, similar to AAPL, which makes sense as AAPL has so much weight on the NDX.

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