Apple Investor in the Wilderness

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Zach Bass (a.k.a Ernie Varitimos) is Chief Bloviator of Investor in the Wilderness. He has 30 years experience as a Tech Maven, Investor and Consultant. Zach has been using Macs since their introduction in 1984, and investing in the markets just as long. His mission is to help guide all level of investors through the Apple Ecosphere and make sense of the markets. Zach's take on Apple, the markets, and life pursuits, will keep your mind tuned.

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Apple Investors Take a Seat and Wedge Out

August 28th, 2008 • Related • Filed Under

While this may seem like more of the same from my last prognostication, there are subtle differences. Yes, AAPL is still channel bound in a Pennant pattern, and the S&P and Naz are in their respective wedges, but They’ve consolidated even more and the trading range has tightened, all are heading towards a pivot point.

So what to make of Wednesday’s (August 27) move up? Not much. The story is at the seams. What I’m referring to are the upper and lower bounds of falling Wedge Patterns on the Naz and S&P. The Naz was stopped cold at its 50-day ema, short of the upper bound of its wedge. And the S&P, which is lagging the Naz, bounced nicely of the bottom of its falling wedge, only to peter out mid session.

So in a word, Wednesday’s market was uninspiring. Until we break out of these wedges, we ain’t going no where! So sit back and take it all in.

The good news is that something will happen soon, as the wedges are coming to their respective apexes. The big question is, will we break up, or break down? I don’t know. But being that we’re still in a bear market, you have to lean towards down. The Counter point might say that the $VIX retreating and the PC ratio dipping, and the 30 and 60 minute charts looking strong, so we may get a surprise break up. On the other hand, the daily charts are not so inspiring with MACDs skirting the zero line, RSIs relatively high, and Gustav is bearing down on the Gulf.

If we have any kind of bad news I fear we’ll drop, and lose the 50s on the indices. That would be disastrous.

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Claudio Lizzola 2 months ago 1 point
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For Apple investors that are still on cash this is clearly the moment in which a position should be established. Day traders may think differently but for people who want to go long the current price is probably the best for the next forseable future.

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marcos 2 months ago 1 point
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Lizzola has a good point. There are lots of choices to short stocks. Apple is not the best. The issue here is indifference and that has been driving or 'walking' the market lately. AAPL is at the cusp of a sustainable and major upward move. Volume is the key. No volume, no interest, no activity either way. Shorts can rule on light volume these days but haven't. Why haven't they? indifference.

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1 /people/marcos/ /people/marcos/following/

ugggg 2 months ago 1 point
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Well considering the economic news that came out today, the case for a bear market gets weaker.

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