Friday, January 25, 2013

A Review Of Apple's Topping Pattern - A Must Read

This blog today is discussing the value of reviewing past patterns. That is also what the Webinar yesterday was about. Past patterns. Here is the webinar link.
This blog today is not to beat up on the holders of a given stock. This blog is discussing how to learn about 'when to sell your big winners'. Apple just happens to be a great example and timely as its fresh.
 It was a long time back on October 08, 2012 when we talked about The Apple Starts to Soften. I got some of the meanest responses to a blog when I wrote that one.  I was reminded by a friend yesterday about the blog.
It is just too eerie when you see the content of the January 1984 Superbowl Ad that ran on January 22, 1984. 30 years later, the ad is spooky. See the ad here.
Apple advertised itself as time to think differently. In the stocks final run up, everyone behaved like the inmates in the movie. They followed the lead of the others.  Everyone is following everyone else down the Apple Mountain now, following the lead of others. Exactly 30 years later, on the next day, the investors behaved exactly like the ad again. Isn't that one of the strongest cases of irony ever?
I don't propose that the charts get everything right. I paper traded an option in Apple at $600 after it fell and expected a bounce. It did not happen!
In the top in Apple, the charts did a good job of mimicking previous exhaustion runs as demonstrated in the blog The Apple Starts to Soften. One Elliott Wave Chartist out of Seattle had plotted Apple to rise to $705 well in advance. Joe Terranova sold Apple on the day. Nice work to both of those technicians!
Here are two of the charts from that blog. There were many more and a good blog to read again.
APPLE 20121008

Here was the daily. (more)
 
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