Talk about a mixed market. Should say a mixed day. The general indexes were up on the day and down from the open.
So I guess the story is AAPL. How many times has that been the case in this bull market? Every day? AAPL closed at 161.47 just a point off its all-time high of 162.51. The high today was 162 even. It is overbought. See the daily chart below.
The question arises “Can AAPL hold up the market all by itself?” Probably, at least for a while. But if it comes apart, the market is likely to flush like crazy. It has an $834-million market-cap which is a number that absolutely defies history so when it falls it could (and likely will) fall very hard.
In the general market, I had end-of-the-day sells on my Breadth signal (as was expected after six days up) and the Volatility signal. The turn-down in breadth was not enough to damage the longer-term breadth. The price signal remains on a buy. Like I said, a mixed day. The market could go either way tomorrow.
I don’t have much more to say.
Hmm…that reminds me, the great trader Linda Bradford Raschke once said (if I may paraphrase) she loved it when nothing much happened in the market because the next big thing usually is a REALLY BIG THING.
SWING TRADING SIGNALS:
PRICE: Buy. (Day 2).
SHORT-TERM BREADTH: Sell. (Day 1).
VOLATILITY: Sell, (Day 1).
LONG-TERM BREADTH: Buy(Day 2).
CNN MONEY’S FEAR AND GREED INDEX: (29 rising, fear).
NIFTY-50 STOCK LIST: 21 Buys; 6 Overbought, 8 Oversold, 1 new buys today, 1 new sells.
(click on the charter for a larger view)