Wednesday, September 10, 2014

Taking A Precious Metal Break With AAPL

Just to be fair, I have no skin in the game with AAPL shares. That said, AAPL is such a large share of the overall equity market, the share remain hard to ignore. Additionally, yesterday Apple hosted the big event where where the company not only announced iPhone 6 but the also the Apple Watch, which frankly I just don't get on why consumers would need an Apple watch but what do I know.

That aside, I thought the price action in yesterday's trading was amazing to watch. Lets look at the charts. F\

First the annual....

and then the intra-day chart

What is interesting here is that it appears some big investors were using the strength to get out in big way. Just look at that volatility in yesterday's trading. Outside of thinking that option traders probably made out well with the volatility, the other idea that crossed my mind was does this volatility portend to an increase in the market's risk. I guess we shall see. More to note and worrisome, we have seen two days with volume coming off the high on AAPL shares. This is as a gap is open at $76 while the RSI and MACD slow relative to the price trend. If owned AAPL shares, I would be concerned if the price AAPL pierced the 50 day moving average.

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