Even if you don’t trade it, you have to watch it

  • Posted by
  • on November 18th, 2012

If there was any doubt left, the market confirmed with a resounding reminder that $AAPL runs the show, for now.   We haven’t seen a one-stock domination like this since Goldman Sachs ($GS) was on top of the world.

Let’s take a look at what happened on Friday.    We had talked about earlier in the week how the consolidation on AAPL had made it go far away from the Bollinger Bands– we don’t really strike in these type of tapes until we get at least to bottom of BB.    On Friday we finally had AAPL move to bottom of BB — we posted this chart after it bounced at 511 (it closed 16 points higher) and shortly after our “quite” long position:

 

 

So we have AAPL at an interesting spot for technical traders– bottom of Bollinger Band, at 11:30 AM.    AAPL bounces hard.

What happens in the S&P 500?    It follows suit like a little puppy following its Mommy.

If you trade coals you still need to watch AAPL.  If you trade crude you need to watch AAPL.  If you trade small caps you need to watch AAPL.   Because right now AAPL is THE best tell the market has and having one stock that is this important is a gift to all technical traders.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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