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Wednesday, January 27, 2010 11:53:21 PM
***There seems to be a lot of distribution taking place in stocks!***
Take a look at AAPL (Apple), one of the more popular tech-traders, people love it because it's a popular company, and creates great volatile trading with lots of volume... after hitting a record high price last week, today's announcement of the "ipad" created a ton of volume as did yesterday's run-up to the news. Was the market really that thrilled the world has another electronic device? To me, the volume is telling me that distribution took place today, and with the news and AAPL failing to break a new high on such volume, it tells me we have about a 3:1 chance that the stock is going to break lower as this volume is going to create a load of resistance... watch out below, and notice the doji candlestick!
How about GOOG (Google), while it had one helluva run-up into it's recent high, that high was NOT an all-time high, and with the sell-off has come accelerated volume and even a large gap-lower last week:
How about BAC, it has been in a distribution channel since gapping down in October, watch the bottom of that channel, if that breaks, it's one tall-tale sign the market is in big trouble (again)!
Even gold stocks aren't immune to this recent downturn, check out NEM, the largest publicly-traded gold company and the only one that is a member of the S&P 500. Notice the 4 gap-downs since December, notice the influx of volume in the past 2 weeks, most of it pressuring the stock to the downside:
Can't leave Microsoft out of this, check out that downturn last week which breached the 50 day moving average!
Overall, some might argue that tech stocks lead the market, well keep an eye on QQQQ, that 50 day moving average at 44.87 is going to create a lot of resistance, currently trading at 44.70, when will it next close above the 50 day moving average? Tomorrow? Next month? 2011!?
Take a look at AAPL (Apple), one of the more popular tech-traders, people love it because it's a popular company, and creates great volatile trading with lots of volume... after hitting a record high price last week, today's announcement of the "ipad" created a ton of volume as did yesterday's run-up to the news. Was the market really that thrilled the world has another electronic device? To me, the volume is telling me that distribution took place today, and with the news and AAPL failing to break a new high on such volume, it tells me we have about a 3:1 chance that the stock is going to break lower as this volume is going to create a load of resistance... watch out below, and notice the doji candlestick!
How about GOOG (Google), while it had one helluva run-up into it's recent high, that high was NOT an all-time high, and with the sell-off has come accelerated volume and even a large gap-lower last week:
How about BAC, it has been in a distribution channel since gapping down in October, watch the bottom of that channel, if that breaks, it's one tall-tale sign the market is in big trouble (again)!
Even gold stocks aren't immune to this recent downturn, check out NEM, the largest publicly-traded gold company and the only one that is a member of the S&P 500. Notice the 4 gap-downs since December, notice the influx of volume in the past 2 weeks, most of it pressuring the stock to the downside:
Can't leave Microsoft out of this, check out that downturn last week which breached the 50 day moving average!
Overall, some might argue that tech stocks lead the market, well keep an eye on QQQQ, that 50 day moving average at 44.87 is going to create a lot of resistance, currently trading at 44.70, when will it next close above the 50 day moving average? Tomorrow? Next month? 2011!?
HI-HO SILVER !!!
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