Some Charts of Interest

Scanning through my charts this weekend, I noticed many displaying extreme conditions.  So below are a few.

Above is the transportation index.  The index is a leading indicator for the health of the economy by moving goods from point A to point B.  The stocks in this index are extremely overbought and in new high territory.

The new highs - new lows index has been hanging at complacent levels for the past few weeks.  Not an area to be loading new long positions. Compared to the panic low area above, buying was lower risk.

Just to show how strong of a market uptrend we are currently experiencing.  AAPL (a stock that is represented in more funds than most any stock) lost -12% this week alone and the mark closed at new highs again this week.  So any recovery by AAPL stock, would bode well for more new highs.  

The Tale of Two Stocks

AAPL reported 4th quarter earnings this afternoon.  Results came in shy of expectations. Chart below.

AAPL is selling off after hours to the tune of -10%.  We originally mentioned shorting AAPL at around $538.00 per share.  The long term play (shorting AAPL) should be held until $315.00 per share which is where the trend reversal pattern price point is displayed.  

Nokia, unlike AAPL is trending higher, and will reveal 4th quarter earnings tomorrow.  More importantly the company will reveal sales for the Lumia 920 and give some guidance.  We originally started buying NOK here Nokia Technical Pattern, at around $2.60 per share and have used options along the way also.  

Bottom Line:  AAPL is down -15% 2013 year to date, while NOK is up +17% year to date. There has been a shift in investor sentiment regarding these two stocks.  Both stocks still have significant downside (AAPL), and upside (NOK) according to their respective charts. Thank you for reading.
 

APPLE Update

I was asked to update AAPL. I mentioned that AAPL looked like a good technical short based on a head and shoulders reversal patter that it was displaying.

Above is the current pattern of AAPL.  Notice the stock has broken the neckline of the head and shoulders confirming the pattern.

Above is a daily chart of AAPL.  Notice that the 50 day moving average is trending lower (bearish). Prior to today the stock had been oversold on a shorter term basis setting up or a bounce (today).  The stock Is still under the neckline and the 50 dma, keeping the trend reversal pattern intact.