Last week on
CNBC,
I was asked to talk about the golden cross in Apple. To this day I
don’t know who came up with this golden cross and death cross stuff, but
I still haven’t seen any evidence that they lead to good entry points,
long or short. To me, the 50 day moving average getting above the 200
day doesn’t mean a thing. I’d much rather focus on the supply and
demand.
When it comes to
$AAPL, I think it’s very simple. After the
initial collapse
that started a year ago next week, Apple found support near the 500
level for a few months before breaking down once again at the end of
January:
The way I see it, any attempt to get back above that 500 level should
fail until that supply, formerly demand, dries out. And to keep things
symmetrical, it should take a few months, not a few weeks, just like
back in December and January. The 500 price is a big psychological
barrier, but more importantly we know there is supply here. Once we get
through last month’s highs, we know that the sellers are probably done.
I thought this was worth bringing up so that we take note of what’s
happening between the buyers and sellers, instead of worrying about
their new phone or whatever is or isn’t going on with them in China.
Forget the company, this is a stock. And it’s only going up if there are
more buyers than sellers. It’s that simple.
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