While the price and volume components are in place for H&S tops on AAPL, NYA and many broad indices, we would note for the record that a H&S pattern only becomes actionable if and when the neckline is broken. But an important heads up (so to speak) nonetheless....
http://stockcharts.c...33125&r=592.png
http://stockcharts.com/c-sc/sc?s=$NYA&p=D&yr=0&mn=6&dy=0&i=p51105026773&a=175475925&r=264.png
More detail here in yesterday's Seven Sentinels.com article
Some Thoughts on the Apple
Started by
IYB
, Apr 30 2012 11:45 AM
25 replies to this topic
#1
IYB
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Posted 30 April 2012 - 11:45 AM
“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” ― Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
#2
andiron
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Posted 30 April 2012 - 11:59 AM
you are referred to: "FIB: where is the volume component"?
#3
IYB
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Posted 30 April 2012 - 12:14 PM
Volume components appropriately noted on above charts.... just so I wouldn't get that question.you are referred to: "FIB: where is the volume component"?
“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” ― Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
#5
IYB
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Posted 30 April 2012 - 02:12 PM
Thanks for chart Blizzard...and for the wonderful sonata. Wow...talk about "magic fingers". 
“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” ― Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
#6
fib_1618
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Posted 30 April 2012 - 02:41 PM
Such a complex piece that they had to edit it in 2, maybe 3 parts.Wow...talk about "magic fingers".
But, boy, Val sure has the perfect fingers to play piano doesn't she?!
Fib
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#7
TechMan
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Posted 30 April 2012 - 05:57 PM
While the price and volume components are in place for H&S tops on AAPL...
Where's the "Pattern Police"?
AAPL is not in a Head & Shoulders top pattern. For one thing, left shoulder marks the 1st peak of the formation. Therefore, there has to be a distinct decline from that 1st peak in order to form the left shoulder. The Neckline is then established by connecting the low of that 1st decline with the low of the decline from the Head.
If anything, this is more fitting as a Broadening Wedge breakout.
Edited by TechMan, 30 April 2012 - 06:05 PM.
#8
DrSP
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Posted 30 April 2012 - 08:45 PM
Someone cut the left jugular and AAPL is bleeding.
you are referred to: "FIB: where is the volume component"?
Diogenes would have added "NYMO" to this chart also. Funny guy!
You could be a billionaire or an industrial worker or a teacher or a moderator of a forum - Hold a good conscience because that is what matters.
#9
diogenes227
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Posted 01 May 2012 - 01:04 AM
Someone cut the left jugular and AAPL is bleeding.
you are referred to: "FIB: where is the volume component"?
Diogenes would have added "NYMO" to this chart also. Funny guy!
Not "would have", always do add "NYMO" to an AAPL chart and most every other chart for that matter.
In this particular instance, the NYMO ticked up on the close of 4/24 (as did the NAMO), giving a clear read that, with AAPL and the NAZ Comp down five days in a row, breadth had turned bullish going into AAPL's earnings announcement. No wonder there was such an explosion in the stock. AAPL was at 560 on the close of 4/24. The next day it closed up nearly 8.5 percent and given that that was three standard deviations of a winning NYMO signal on AAPL some traders would automatically take that profit.
Other traders might take the top of the gap, the low of 4/25, as a stop and take 46 points of profit out of the stock at 606. Or another trader might still be holding the 24 points of profits from 4/24 and looking for another move to the upside. Sell signals are individual.Add "NYMO" to an AAPL chart? No $hit! That's where the the money is made.
http://stockcharts.c...35850334444.png
Edited by diogenes227, 01 May 2012 - 01:07 AM.
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."
#10
DrSP
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Posted 01 May 2012 - 01:59 AM
In this particular instance, the NYMO ticked up on the close of 4/24 (as did the NAMO), giving a clear read that, with AAPL and the NAZ Comp down five days in a row, breadth had turned bullish going into AAPL's earnings announcement. No wonder there was such an explosion in the stock.
Yeah! If NYMO didnt turn "bullish" 2 days before AAPL announcement, AAPL would have tanked to 500$. You are living up to what I said above.
Does the EPS they announce, millions of phones and pads also depend on "breadth turning bullish" 2 days ago?
You could be a billionaire or an industrial worker or a teacher or a moderator of a forum - Hold a good conscience because that is what matters.
