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Monday, March 14, 2011


Nothing new to say about the market. We are held hostage to events that are in God's hands. (I only wish the UN would get off their ass, and help an emerging democracy. The fact that we are still seeing a debate around implementing a no-fly zone in Libya after all that has developed this weekend, is quite breath-taking. The UN is basically letting people, who want a voice in their government, die. But I digress... )

So here is a detailed technical assessment of AAPL.

The daily is projecting a limbo state. Not surprising given the strong fundamentals of Apple, but the crappy macro-environment. I will try to take advantage of this limbo as Apple's strong showing of the iPad 2 will lead all analysts to up their estimates. (Prior to the iPad 2 earnings forecasts were not projecting the kind of acceleration we saw this weekend.)

To me, the CCI is indicating the limbo, while the Slow STO set-up projects a high probability of a potential thrust downward.

If a thrust downward is to happen, there is support around 347-348 via the weekly SMA.

I was comfortable adding to my position on the weakness today, and am prepared to add in the high 340s. But due to the demand of the iPad 2, I find it very interesting that the market is allowing AAPL to enter the 340s again.

With next quarter's earnings, and a PE of 19, AAPL will be at 377. (Look at the forward PE link, under links, and these numbers did not factor in the iPad 2 rate of growth.)

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