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Amar Daryanani
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I am a trader, stock market analyst and founder of Market Chart Analysis.com and BolsaMercados.com. These two websites cover trading opportunities based on Technical Analysis in America as well as Europe. My aim with these sites? I would like to share my market views with whoever is interested... More
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  • Will Apple Have To Return Its Crown To Exxon?

    Apple - about to forfeit its throne to Exxon Mobil?

    Apple Inc. is about to lose its throne as the King of most capitalized companies in the world.

    AAPL has grown a lot in recent years becoming the largest company in the globe overtaking Exxon Mobil last 25th January 2012.

    AAPL has pulled back a lot from a high in September 2012 of $705 all the way to a low of yesterday of $450. The reasons are very clear:

    1.) The margin trading for leverage operations has been doubled from 30% to 60% throwing many traders out of the market

    2.) The decrease in earnings and profit margin in Apple's balance sheet has not been taken well by the investor market

    3.) The less demand on the iPhone 5 has forced them to reduce manufacturing orders to their suppliers so as not to hold excess of stock.

    This has created a snowball effect that has motivated many analysts in Wall Street to downgrade their view on Apple Inc., inclining their clients to other equities.

    Let's take a look at the Daily Chart that compares Apple (NASDAQ:AAPL) and Exxon Mobil (NYSE:XOM) courtesy of Stockcharts.com

    We can observe a very clear divergence between these two giants from January 2013, in which the oil company continues with its upswing while the tech apple starts to rot away.

    Yesterday we found out the market cap data of these two: Apple's presence in the market is worth 431 billion USD while Exxon is currently running a good 417 billion USD. The difference between them begins to shorten.

    If all continues at this pace, I wouldn't be surprised to see how Apple would have to return the crown to Exxon in a short time frame. Let's not forget that XOM has been around since 1889 and its core business is more necessary for the real economy than the technology giant.

    Happy Trading!

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Jan 27 9:20 AM | Link | Comment!
  • Dow Jones ETF: Enjoying A Christmas Rally Already.

    Today we study the Dow Jones Industrial Average on its Daily Chart, via the SPDR ETF (Ticker: DIA).

    (click to enlarge)

    The upswing that we can see on the chart began on November 16th and has taken the index to gain over 7% in 30 days.

    The rally has been performed in a healthy way according to our Technical Analysis. A few factors to consider here:

    - The price bounced from an extremely oversold RSI and is currently approaching the Overbought Zone (although there is still room for the price to continuing pushing higher)

    - There is a clear pattern of a Reverse Head and Shoulders as DIA broke above the neckline yesterday.

    - There has been a positive cross between the 10SMA and the 30EMA. However, this crates now a small divergence between these two moving averages.

    Our appreciation is that the Dow will continue rallying for the next few days and maybe until the end of the year, but the fact is that a small correction is necessary for the Index to continue its bull cycle.

    Remember that the festivities are beginning soon and many investors will take Christmas leave lowering the trading volume during this period.

    Happy Trading!

    -Amar.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Tags: DIA, etf-analysis
    Dec 20 6:49 AM | Link | Comment!
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