Kevin Wilde's  Instablog

Kevin Wilde
Send Message
Kevin Wilde is the chief trading strategist at and a Master. Investors can follow his trading advisories via his Daily AK newsletter, or have their money run for them via money management services, where Kevin's trades will be automatically entered.
My company:
  • Apple - Time To Buy 0 comments
    Mar 6, 2013 11:23 AM | about stocks: AAPL

    The apple question is whether the decline from the peak is a corrective three-step event or an impulsive five-step one. If its a correction then the red lines show the likely expected path going forward. If its an impulse wave in a larger bear market for Apple then the dashed yellow line highlights where we go next.

    I believe the positive divergence of the MACD and RSI (coming off an extreme oversold level) argue for the red line rally to unfold next rather than a continuation of the plunge.

    Note how the downward blue arrows of the MACD and RSI highlighted negative divergence going into last years high. Now we have the opposite, with upward sloping blue arrows on the MACD and RSI highlighting positive divergence.

    I believe what happens to Apple has a major impact on broader stock prices, with a continuation of the slide likely sealing the end of the blow-off rally, while any significant rebound likely opens the door to a larger melt-up rally led by the NASDAQ and NASDAQ 100 (QQQ) indexes along the lines of what we saw in 2000 and 2007.


    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: AAPL
Back To Kevin Wilde's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.