Time For Beast Mode AAPL bulls.
At the end of last month I wrote two articles on AAPL, pointing out that owning, or certainly buying into the stock at that point in time, really made no sense. You can review my thesis here and here if you so please, but here is the chart I used to articulate my point.
If you review today’s chart (shown below) you can see, we got part of what I expected, but the stock found support at 107, and put in a higher low. Score one for the bulls.
However, having the ball on the 1 yard line does not gaurantee victory. Just ask the Seattle Seahawks.
Additonally, AAPL has lagged the S&P 500 by about 50% since that post.
AAPL closed that friday 9/27/2015 at 114.71, SPX closed 1931.34. SPX is up 8% since then and AAPL only 4%, which was my point anyway. It was too early to be “Bearish”, but there was enough to really have at best a neutral view.
So today, we find ourselves on the goal line. The bulls either win the game, by pushing through not only 120, but also the 200DMA, or the bears make a goal line stand, and get another chance to trigger the H&S top so many are watching.
As you can see, from my two original articles and the chart above, I have been watching this 120 level as a junction point and I will continue to as something is bound to happen soon.
Hopefully, for AAPL bulls have someone better calling the plays.
For me personally, I’m sticking with my original plan, and that is still no reason to own AAPL here.
AAPL vs SPX Relative Strength still below 200DMA.