Always consider hidden risks
SPY ETF/Apple Shares: Good Earnings but Not Good Enough?
July 27 2016 ( From TradingView, CNN Money )
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The market participants never gave attention to that two Wedges
technical pattern on a weekly basis on SP500 Index (SPY ETF)
and Apple Shares.In the case SPY ETF, we were within a Weekly Rising Wedge that
started back since August 18 2015. It was broken on the upside
on July 4 week. (See First Chart Below - Thick Red TrendLine - Ellipse)
The SPY ETF is making on a weekly basis higher lows and higher
highs. (See First Chart Below)
In the case of Apple Shares, we are still within a Weekly Falling Wedge
that started back since October 13 2014 as, at time of writing this
morning in the pre-opening market at the $102.47 level.
(See Second Chart Below - Thick Red Trendlines)
Apple Earnings were above Expectations
(Apple Reports Third Quarter Results) but the question is:
Are those Good Earnings Good Enough for a Weekly Breakout at the $104.40 ish zone?
(See Second Chart Below - Top Red Trendline - Ellipse)
And few of us realize that in fact, Apple Shares are under performing tremendously the SPY ETF on a relative basis (ratio of AAPL vs SPY ETF - Daily Chart) 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) At the .472 level in pre-open, the ratio is still far from the 200 DMA (Day Moving Average at .509. (See Third Chart Below - Green Line)So Apple Earnings were finally very Good News but Bulls still face a challenge for a Real Weekly Breakout above the $104.40 ish zone...
"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
SPY ETF/Apple Shares: Good Earnings but Not Good Enough? $SPY, $AAPL #Trading #investing #aapl #SP500
(SPY ETF - Weekly Candles)
Apple Shares ( AAPL )
SP500 Index ( SPY ETF )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
(AAPL - Weekly Candles)