Gary Johnson L's  Instablog

Labels: AAPL, BAC, FB, GOOG

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Apple, Inc (NASDAQ: AAPL) I know Apple has a lot of cash and good fundamentals but potential growth in the future accounts for the most under DCF, Gordon and various different models. Obviously, there is fear that Apple will be or even is ALREADY experiencing deteriorating growth. Many companies are now cutting estimates on its Q4 EPS projection. AAPL is now trading with roughly 3x P/B ratio and 11x PE ratio. Some say it is a good bargain but I think chart never lies. On Friday, Apple has broken below its long term WEEKLY uptrend and kept trading below it for the whole trading day. Centerline of MACD crossed below 0 last month. Hey! It's a weekly chart crossing below. I don't think it is that much of a good thing, neither a good timing for fundamentalist to entry now! Plus, it is now trading below weekly MA(50). I still short APPL and has a new target of $450 before 2013.

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Google, Inc. (NASDAQ: GOOG) Thursday's open broke above the inverted head and shoulder pattern significant. However, thanks to the bears, Google has been down significantly but still trading just above the $700.00 neckline. I think it is a good entry level with a stop around $670 (first shoulder). Both upper and lower Bbands are upward sloping, as well as both MACD centerline and signal line. Slow STO and RSI confirm the trend. No negative divergence is found on charts.

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Bank of America Corp (NYSE: BAC) is under consolidation and accumulation. Similar pattern is found in November right before last breakout took place. A break above $10.710 could trigger a strong move to $11.00 quickly.

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Facebook, Inc. (NASDAQ: FB) broke below the ascending triangle (or flag) on Friday and MACD crossed below. However, the steep upward sloping On Balance Volume amid the tight range of price action shows the stock is under accumulation and Friday's break-below might be just because of bad sentiment as insider's sales on FB stocks. I think a stock with gap filled, a triple bottom pattern and an upward sloping MA(50) should not be reversing that soon. At least, I think it won't get below $25, where the gap began again. I remains bullish on Facebook based on its technicals.

Disclosure: I am short AAPL.

Additional disclosure: I am not compensated by any company to write any of my opinion.