Diamond In The Rough:
Apple commands clout in the markets being the largest company in the world via market cap. What happens with the stock has dramatic effects on domestic benchmarks, and surely it is among many of the top 10 mutual and hedge fund holdings globally. Since a spirited run from 130-176 in July-August, the name has been floundering and has given back the vast majority of the move. It now has the look of a bearish descending triangle but a break ABOVE the 150 level could see a powerful move as from FALSE moves come fast and furious ones in the OPPOSITE direction. The chart below shows that would also be a break above a diamond pattern. Is the fact that AAPL is lagging behind technology an ominous sign or is the market’s performance without its participation a bullish tell? Of course, we will not know that until hindsight but with the Nasdaq up 8% over the last month period with AAPL higher by just 2%, if Apple does begin to cooperate could that ignite a robust technology run? The 150 level will be a key to watch.