Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Apple Drops a Turd in the Punch Bowl

IMG Auteur
Published : January 26th, 2013
450 words - Reading time : 1 - 1 minutes
( 5 votes, 1/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis



Our very short-able target in Apple has been $461 or lower. Last week, however, with the stock in the throes of a steep rally, we moved to the sidelines. As we explained in a headline at the time, We’ll Sit Out the Short Squeeze. And so we did, as Apple rallied from a 30-percent-correction low of $483 last Tuesday to a high yesterday afternoon of $528. That peak proved fleeting, however, to put it mildly, since one could have bought the stock just 90 minutes later for as little as $457.

What could account for such violence? For starters, there was the usual confluence of village idiots (aka “Wall Street”), headless chickens and panicky shorts waiting for the big announcement from Cupertino. All it took to send these nervous players colliding like particles in an atom smasher was some disappointing earnings news. This Apple duly supplied after the close with a report that profits for the most recent quarter had remained flat for the first time in years.

So why did AAPL shares initially feint higher on such rotten news? Answer: The aforementioned village idiots, headless chickens and panicky shorts were evidently drawn offsides when the ball was snapped. Remember, these are guys who have come to depend on “thinking” machines reacting at the speed of light to get an infinitesimal edge over the competition. Under the circumstances, it’s not surprising that some of those machines would have jumped the gun the instant the letters “Ap…” appeared on the tape.

S&Ps Topping?

So what now? Although the stock signaled even lower prices (i.e., 447.55, a “Hidden Pivot” support) when it exceeded our target at $461, we don’t pretend to know how this is going to affect the stock market in the days ahead. Even so, it’s worth noting that the S&P futures had been struggling for two days to push above a longstanding rally target of ours at 1494.50. The best they could muster — on Tuesday, in after-hours trading — was 1491.50.

Will that prove to have been a major top? Quite possibly. If not, though, there is another rally target above it with the potential to stop a nearly four-year buying rampage that has feasted on bear stew since early in 2009. And above it there is yet one more Hidden Pivot target – for the Dow Industrials – that we’ll hold in reserve against a possible Mother of All Bear Traps. Want to see how high this die-hard permabear thinks the Indoos can go? Click here for the free trial subscription to Rick’s Picks that will give you access to the answer. Then come over to the chat room, where you can ask actual subscribers how consistently we’ve been on-the-money.


<< Previous article
Rate :Average :1 (5 votes)
>> Next article
Rick Ackerman is the editor of Rick’s Picks, a daily trading newsletter and intraday advisory packed with detailed strategies, fresh ideas and plain old horse sense.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Way Out
15:42Gypsy1
James, you're wrong to think the people on earth couldn't THRIVE ~ live well, eat well, enjoy great lives, advance mankind ~ with the resources we ...
Time to Eliminate Pilots in Airc...
30 MarShadowdoo1
Hi Mish, Sorry pal, I would rather take the door off than give the controls to some moron on the ground. Especially with that nitwit in t...
Gold: April 2015 Update
30 Marovertheedge
"I have been invited to speak at the Mines & Money Mauritius Conference in June 2015 again. If you would like to join you can receive 25% off your ...
Greece Needs the Magic Formula t...
30 Marovertheedge
Wow dude. "Idiocracy" is obviously not just another dumb-ass movie. I admit that I should have recognized your devotion to Brawndo (it has ...
Signs that America Will Hit the ...
30 MarFalconflight
I'll tell you what signals a return of the Dark Ages....the growing, almost hysterical screed again in the West that those Jews are responsible for...
Misunderstanding "Peak Gold"; Go...
29 MarTed S.1
Hi Mish, You make a good point about the difference between commodities and gold. It's a great point of discussion to counter people who ar...
The Finanser Interviews Jon Matonis
29 Marovertheedge
"In late 2009, I got introduced to Bitcoin by a random email from Satoshi Nakamoto. I didn’t give it much thought at the time and then 3-4 months ...
Gold Effect on Mining & Shale Wa...
28 Marneville1
Thank you Jim Willie for your open and candid report on some of the most urgent matters agrevating this economically and war torn world thanks...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Bankers Petroleum(Oil)BNK.TO
to Release First Quarter Operational Update and Hold Conference Call April 7, 2015
CA$ 2.71-1.09%Trend Power :
Corporate news
Aurico(Au-Ag)AUQ.TO
Announces Details for First Quarter Results and Annual General Meeting
CA$ 3.50-2.78%Trend Power :
Financials
Erdene(Au-Cu-Mo)ERD.TO
Reports Initial Resource Estimate for Altan Nar Gold-Polymetallic Project
CA$ 0.12+19.05%Trend Power :
Corporate news
Impact Silver(Ag-Au-Cu)IPT.V
Reports Additional Wide & High Grade Drill Intercepts at San Ramon Deeps; Expands Scope of Mi
CA$ 0.18-2.63%Trend Power :
Corporate news
Dundee Precious Metals(Ag-Au-Cu)DPM.TO
Announces Reserve and Resource Update for 2015
CA$ 2.72+1.49%Trend Power :
Corporate news
Typhoon Expl.(Au-Gems-Ur)TYP.V
Acquires Two New Properties
CA$ 0.06+0.00%Trend Power :
Corporate news
Silver Bear Res.(Ag-Au-Le)SBR.TO
Announces the Filing of its Financial Results for the Year Ended December 31, 2014
CA$ 0.04+12.50%Trend Power :
Financials
Rogue Res(Cu-Le-Ni)RRS.V
Appoints Angela Yap CFO
CA$ 0.06+9.09%Trend Power :
Nominations
Chesapeake Gold(Ag-Au-Cu)CKG.V
Announces New Water Source Strategy For Metates; Updated Pre-Feasibility Study To Be Released
CA$ 2.14+0.00%Trend Power :
Corporate news
Saturn Min.(Cu-Au)SMI.V
Completes Seismic Program at Little Swan Saskatchewan Oil & Gas Property
CA$ 0.17+0.00%Trend Power :
Corporate news
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.