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SPY ETF/AAPL PVT: A Tale of Two Worlds?
May 13 2016 ( From Stockcharts , Columbus Dispatch, Barchart, TradingView )
May 13 2016 ( From Stockcharts , Columbus Dispatch, Barchart, TradingView )
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The Situation
We observed that the Price Volume Trend of the SP500 tend to turn
earlier and or confirm the trend of the Mighty SP500 (SPY ETF) as you
may see in the chart below... The same idea for Apple Shares (AAPL).
Since bottoming out on January 27 2016, Apple PVT have been into
a painful grind in a narrow uptrend channel and then on April 18 2016,
it did broke the support trendline of that channel, a bad technical sign.
(See Second Chart Below - Bottom Panel - Blue Line - Channel)
SPY ETF PVT made a low in this cycle only on February 11 2016, quite
later than Apple shares but still into an uptrend channel...
(See First Chart Below - Bottom Panel - Blue Line)
Some Technical Observations:
- On SPY ETF we broke on the downside the 20 DMA (Day Moving
Average) on May 11 then at 207.79
(See First Chart Below - Top Panel - Yellow Line - Ellipse)
- On SPY ETF we broke on the upside the 50 DMA on February 25 then
at 194.48 (See First Chart Below -Top Panel - Red Line - Ellipse) and most importantly the 200 DMA on March 11
then at 202.11 and still above both. (See First Chart Below - Top Panel - Green Line - Ellipse)
- In the case of Apple Shares, we did break on the downside the 20 DMA already on April 18 then at 108.71 (See Second Chart Below - Top Panel - Yellow Line - Ellipse) and the 50 DMA on April 26 then at 104.07 (See Second Chart Below - Top Panel - Red Line - Ellipse) and the 200 DMA on April 15 then at 110.64.
But the most crucial technical factor is that Apple Shares finally did break the Major Trendline on PVT on April 27 2016 that started back from July 20 2015 (previous breakout trendline) (See Second Chart Below - Bottom Panel - Red TrendLine - Ellipse) and now challenging the support trendline that started since August 24 2015, the flash crash day. (See Second Chart Below - Bottom Panel - Amber TrendLine - Ellipse)
And early at the party compare to the SPY ETF, Apple Shares also broke a Major Support Trendline price wise on May 12 2016 that started back since August 24 2015.
(See Second Chart Below - Top Panel - Amber TrendLine - Ellipse)
And few of us realize that in fact, Apple Shares are under performing the SPY ETF on a relative basis (ratio of AAPL vs SPY ETF) since April 14 2016 when it reached the resistance trendline of a downtrend channel and broke soon thereafter the major support trendline that started back since June 28 2013!
(See Third Chart Below - Red TrendLine - Ellipse)
A Weekly Support Trendline is becoming the last call for Bulls on Apple Shares (trendline that started back since October 2014) but already a lot of technical damage have been done...
(See Fourth Chart Below - Red TrendLine - Ellipse)
We observed that the Price Volume Trend of the SP500 tend to turn
earlier and or confirm the trend of the Mighty SP500 (SPY ETF) as you
may see in the chart below... The same idea for Apple Shares (AAPL).
Since bottoming out on January 27 2016, Apple PVT have been into
a painful grind in a narrow uptrend channel and then on April 18 2016,
it did broke the support trendline of that channel, a bad technical sign.
(See Second Chart Below - Bottom Panel - Blue Line - Channel)
SPY ETF PVT made a low in this cycle only on February 11 2016, quite
later than Apple shares but still into an uptrend channel...
(See First Chart Below - Bottom Panel - Blue Line)
Some Technical Observations:
- On SPY ETF we broke on the downside the 20 DMA (Day Moving
Average) on May 11 then at 207.79
(See First Chart Below - Top Panel - Yellow Line - Ellipse)
- On SPY ETF we broke on the upside the 50 DMA on February 25 then
at 194.48 (See First Chart Below -Top Panel - Red Line - Ellipse) and most importantly the 200 DMA on March 11
then at 202.11 and still above both. (See First Chart Below - Top Panel - Green Line - Ellipse)
- In the case of Apple Shares, we did break on the downside the 20 DMA already on April 18 then at 108.71 (See Second Chart Below - Top Panel - Yellow Line - Ellipse) and the 50 DMA on April 26 then at 104.07 (See Second Chart Below - Top Panel - Red Line - Ellipse) and the 200 DMA on April 15 then at 110.64.
But the most crucial technical factor is that Apple Shares finally did break the Major Trendline on PVT on April 27 2016 that started back from July 20 2015 (previous breakout trendline) (See Second Chart Below - Bottom Panel - Red TrendLine - Ellipse) and now challenging the support trendline that started since August 24 2015, the flash crash day. (See Second Chart Below - Bottom Panel - Amber TrendLine - Ellipse)
And early at the party compare to the SPY ETF, Apple Shares also broke a Major Support Trendline price wise on May 12 2016 that started back since August 24 2015.
(See Second Chart Below - Top Panel - Amber TrendLine - Ellipse)
And few of us realize that in fact, Apple Shares are under performing the SPY ETF on a relative basis (ratio of AAPL vs SPY ETF) since April 14 2016 when it reached the resistance trendline of a downtrend channel and broke soon thereafter the major support trendline that started back since June 28 2013!
(See Third Chart Below - Red TrendLine - Ellipse)
A Weekly Support Trendline is becoming the last call for Bulls on Apple Shares (trendline that started back since October 2014) but already a lot of technical damage have been done...
(See Fourth Chart Below - Red TrendLine - Ellipse)
"To fight and conquer in all your battles is
not supreme excellence; supreme excellence consists in breaking the enemy's
resistance without fighting."
-Sun Tzu, the Art of War
-Sun Tzu, the Art of War
SPY ETF/AAPL PVT: A Tale of Two Worlds? $SPY, $AAPL #Trading #investing #aapl #SP500
Price Volume Trend - a Definition (from Stockcharts.com)
PVT is a leading indicator for future price movements. Although interpretation of PVT is similar to the OBV and the Accumulation/Distribution indicators, PVT more accurately demonstrates the flow of money. PVT adds only a proportional amount of volume to the indicator, whereas OBV adds the same amount of volume not considering whether the market closes up a fraction of a point or triples in price.
1.Rising PVT means new money, sometimes referred to as "smart money, " is flowing into the marketplace. The result will be that the present trend will continue. Accelerating PVT rise indicates that "the masses" are joining the new price trend.
2.If the PVT then levels off, it is often an early warning that the trend is finishing.
3.Declining PVT indicates that the smart money is liquidating.
4.If the PVT moves sideways or falls while the price is rising, the increase in price is not confirmed and a market top or bottom may be indicated.
PVT is a leading indicator for future price movements. Although interpretation of PVT is similar to the OBV and the Accumulation/Distribution indicators, PVT more accurately demonstrates the flow of money. PVT adds only a proportional amount of volume to the indicator, whereas OBV adds the same amount of volume not considering whether the market closes up a fraction of a point or triples in price.
1.Rising PVT means new money, sometimes referred to as "smart money, " is flowing into the marketplace. The result will be that the present trend will continue. Accelerating PVT rise indicates that "the masses" are joining the new price trend.
2.If the PVT then levels off, it is often an early warning that the trend is finishing.
3.Declining PVT indicates that the smart money is liquidating.
4.If the PVT moves sideways or falls while the price is rising, the increase in price is not confirmed and a market top or bottom may be indicated.
SP500 Index ( SPY ETF - Top Panel - Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Price Volume Trend ( Bottom Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Price Volume Trend ( Bottom Panel - Blue Line )
Financialiceberg.Com
Apple Shares ( AAPL - Top Panel - Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Price Volume Trend ( Bottom Panel - Blue Line )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Price Volume Trend ( Bottom Panel - Blue Line )
Financialiceberg.com
Daily Ratio
Apple Shares ( AAPL )
over
SP500 Index ( SPY ETF )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Apple Shares ( AAPL )
over
SP500 Index ( SPY ETF )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Financialiceberg.com
Apple Shares
( AAPL - Weekly Candles )
( AAPL - Weekly Candles )
Financialiceberg.com
