Always consider hidden risks
SPY ETF/Apple Shares: A Tale of Two Wedges?
May 31 2016 ( From TradingView, CNN Money )
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The market participants never gave attention to that twoWedges
technical pattern on a weekly basis on SP500 Index (SPY ETF) and
In the case SPY ETF, we are within a Weekly Rising Wedge that
started back since August 18 2015.
(See First Chart Below - Thick Red TrendLines)
In the case of Apple Shares, we are within a Weekly Falling Wedge that
started back since October 13 2014.
(See Second Chart Below - Thick Red TrendLines)
The SPY ETF is making on a weekly basis higher lows but not higher
highs yet but quite near a Breakout.
(See First Chart Below - Top Thick Red TrendLine - Ellipse)
Also interesting to note the Fear and Greed Index from CNN Money
as of May 27 is now at the Extreme Greed Level of 78.
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) The Buffet move since May 12 is only a dead cat bounce.
"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: A Tale of Two Wedges? $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)