A Market of Stocks

A MARKET OF STOCKS

Courtesy of David Grandey of All About Trends

With Friday’s rally, the indexes remain overbought, closer to resistance than support.

 
 
 

 

While the overall market looks extended, it’s a market of stocks and we look for both long and short opportunities.  

On Friday (3/22), we initiated a short sell trade in Apple Inc.  AAPL is overbought and flirting with its 50-day moving average and downtrend line — a move made on light volume.  Often, when a stock is locked in a downtrend, it will return to the scene of the crime to retest its low. AAPL hasn’t retested yet. 

 
 
 

 

We shorted 20 shares of AAPL at $461.30.

We also added a new name to the LONG watch list: JIVE.

 

JIVE is in a confirmed uptrend (shown by the green lines) that is pulling back to support at the 50-day moving average with additional support shown by the blue lines and the bottom of the uptrend channel.  This is what we call a Pullback Off Highs pattern — the only pattern we need to know to buy leading stocks in confirmed uptrends at low risk entry points. 

A break above the pink line triggers a long-side trade.

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Trackbacks

  1. [...] Grandey of All About Trends is shorting Apple Inc. (AAPL), based on his technical analysis.  He writes, “On Friday (3/22), we initiated a short sell trade in Apple Inc.  AAPL is overbought and [...]

  2. [...] of All About Trends mentioned that he was shorting AAPL in this weekend’s Market Shadows newsletter. Today, he covered his short position in AAPL. [...]

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