While almost all of my indicators are positive, I am keeping an eye on AAPL, which is still weak. The popular explanation for AAPL’s weakness is that its weighting in the Nasdaq 100 index will be reduced on May 2. ETF’s that mimic this index will have to reduce their holdings in AAPL. I am not so sure that is the only reason behind AAPL’s weakness. This leading stock may just have been pushed to the limit for this market cycle? As we get closer to May, I always remember the analyses that show that one should “Sell in May and go away.” With the percentage of bearish advisers taking a sudden dip to 15.7%, this party may be getting late. If the percentage of bullish advisers should climb above 60% (it is now 57.3%) I will become very concerned. Sentiment is a contrary indicator, most people are bullish near market tops.
Dr. Wish
6th day of QQQ short term up-trend
The markets remain in short and longer term up-trends.
5th day of QQQ short term up-trend; APKT doubles
The QQQ short term up-trend reached the 5th day on Tuesday. I am now more confident that this up-trend can last for a while. With options expiration coming at the end of next week, we may see continued strength in the leading stocks. Note that the Worden T2108 is now at 74%, getting closer to overbought levels. When T2108 is above 80%, the market often peaks.
Last October I wrote about APKT as an RWB rocket stock. It was a stock that my stock buddy, Judy, has often talked about. APKT was around $37 in October. It closed Tuesday at $73.60 and remains in an RWB pattern. In fact, by my technical criteria, APKT bounced off of support yesterday. It reports earnings on April 26 and we are now in the period when stocks tend to move in anticipation of earnings.
