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Jeff Pierce
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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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tradewithZEN
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  • Positioning Yourself Ahead Of The Herd 0 comments
    Apr 1, 2013 4:46 AM | about stocks: BBRY, AAPL

    By Jeff Pierce

    I'm out to suggest that we do something at Astrology Traders that is both unique, prescient and profitable. It's also very different from any other service out there where we blend financial astrology and my expertise in technical analysis. Whatever your belief is at the end of the day it's all about results. I would trade off tea leaves if there was a definable trading edge.

    I'm only highlighting this because of an article I saw on Marketwatch today. I felt it was worth sharing an excerpt from our December 16th update (over 3 months ago!), where we highlighted Apple and RIMM then, now BBRY, to see how we were way ahead of the curve on these two companies.

    Then and Now:

    Apple was then at $509 - now $442 after falling below $425. If you bought Apple you'd be underwater, have taken a big loss, or have your money tied up in a under-performing stock while the Dow makes all time highs.

    RIMM was then at $14.04, where we called for a pullback to $10.50-11 which happened and it went on to go over $18. Obviously we would have never exited at the top, but there as an opportunity for better than 50% gains. The mere fact that we were positioning our subscribers to get long RIMM and short/avoid Apple is huge in my opinion.

    RIMM wasn't on anybody's radar at that time and everybody expected AAPL to rebound. This is my main point of this article. We were identifying a long trade in RIMM long before anybody else was and advising our subscribers to avoid Apple like the plague.

    How could that knowledge alone have helped you in your trading?

    Excerpt from Dec 16th update.

    AAPL (Apple Inc.)

    Apple bounced up in the beginning of the week and fell apart Thursday and Friday. As I suggested last week December 16th-23rd could produce a further decline. On Monday Mars will square the Sun in the incorporation chart and square Pluto in the IPO chart. The combination could produce a high volume decline and gap down. Transiting Pluto is at the same time square Saturn in the 8th house of institutional investors and retirement accounts. Uranus (technology) will oppose Saturn in March and suggests further difficulty and trying times. Apple has a strong incorporation chart which suggests the company can continue to be a leader in new technology, however these very harsh aspects suggest it could be a long drawn out process to recover from this downturn. Continue to hold short positions.

    Then

    (click to enlarge)

    Now

    (click to enlarge)

    RIMM (Research in Motion Ltd.)

    The RIMM story may be the opposite of Apple. RIMM has more than doubled in price since October and has caught our attention. Pluto is conjoin Jupiter (institutional investors) in the incorporation chart and conjoin the Midheaven in the IPO chart. The combination suggests a new cycle has been set in motion that is fortunate and could launch the company to a higher status with lucrative foreign trade deals. RIMM is expected to release it's new BlackBerry 10 next month and has hopes to penetrate the emerging markets to drive revenue. Apple's IOS and Google's Android platforms are already highly competitive in every foreign market RIMM is hoping to gain market share in.

    I am very optimistic about RIMM's ability to capture market share in those markets with the Pluto/Jupiter conjunction. RIMM could also be selected as a provider in a large government contract in the near future. There are some challenging Mars transits beginning next week that could produce a pullback into December 28th where we could see an opportunity to setup a long position. Neptune will trine Mars in the IPO chart in February and suggests there could be increased profits and lucrative business deals. Watch for a trade alert near December 28th.

    Then

    (click to enlarge)

    Now

    (click to enlarge)

    So, let's fast forward to today. Below is an excerpt from an article from Marketwatch on these 2 companies which merely reports the past and does not have much to offer in the way of financial predictions about where these 2 companies go from here. I see no point in even reading an article like this as it provides no actionable information.

    This is the exact reason why I avoid the majority of financial media sites.

    Apple AAPL -2.08% fell 17% in the first quarter on concerns over slowing demand for its iPhones and iPads, following a 20% drop in the fourth quarter. The last time the stock declined two subsequent quarters in a row was in 2008 when it shed 49% from $167.44 at the end of the second quarter to $85.35 at the end of the fourth quarter in 2008, according to FactSet.

    "We are reducing our large-format iPad unit estimates going forward, which, along with modest growth expectations for the iPhone, prevents a more positive view of Apple," Hargreaves wrote in a note. ~Andy Hargreaves, an analyst at Pacific Crest Securities.

    "While Apple shares have underperformed in 2013, we believe that the stock will be an outperformer in the second half of the year. We are maintaining Apple as a top pick for 2013," said Gene Munster in his update on the stock.

    Compared to Apple, BlackBerry BBRY -0.84% is having a great year so far. Its stock rose 22% in the first quarter, on top of a 58% surge in the fourth quarter and a 1.5% gain in the third quarter of last year.

    On Thursday, it surprised Wall Street by reporting a fiscal fourth-quarter profit and announced it shipped about 1 million units of its new Z10 smartphone. The unexpectedly robust numbers sparked a strong rally but the stock closed the session lower as concerns about dwindling subscribers overshadowed the positive news.

    Considering the push-and-takes with news flow, which seems to change on a weekly basis, an investment in Blackberry is not for the faint-hearted," Mark Sue, an analyst at RBC Capital Markets, wrote in his report.

    If you want to read yesterday's news then continue reading sites like the previously mentioned. If you want to have access to tomorrow's news, they try a 2 week free trial to Astrology Traders and read our last 6 months of reports before deciding if you want to stay with us. You'll also receive 2 real time reports during that 2 week trial. You have absolutely nothing to lose and everything to gain. I personally will make sure you will be refunded every penny if you aren't happy with the information we provide.

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