Apple Is Barely Holding Support. Should the Bulls Worry?
Apple rallied in December after holding $120. Now it’s back and threatening to break support at that level.
The price action is part of the ongoing technical weakness in the smart-phone giant. It had a false breakout in January and a trend-line failure last month. Today we got a clue why: AAPL has cut production of its iPhone 12 mini, according to Nikkei. Once again, technical analysis is miles ahead of fundamental analysis.
Here’s another interesting chart. It compares moves in AAPL with the SPDR Financial ETF since February 16 – the day financials broke out to a new 13-year highs.
The 15-minute interval demonstrates how XLF has often climbed at the same time AAPL declined. While doesn't mean exactly that investors are selling one to buy the other, it does highlight the market’s current sentiment.
Given the odds of strong economic growth and higher interest rates, plus wide differences in valuations, this could be a longer-term trend. Some traders may struggle to accept a shift toward cyclicals and value stocks, but it seems to be jumping off virtually every chart we view.
“Embrace change,” is one of our core values at TradeStation. Now could be the time to apply this principle in your own investing.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The price action is part of the ongoing technical weakness in the smart-phone giant. It had a false breakout in January and a trend-line failure last month. Today we got a clue why: AAPL has cut production of its iPhone 12 mini, according to Nikkei. Once again, technical analysis is miles ahead of fundamental analysis.
Here’s another interesting chart. It compares moves in AAPL with the SPDR Financial ETF since February 16 – the day financials broke out to a new 13-year highs.
The 15-minute interval demonstrates how XLF has often climbed at the same time AAPL declined. While doesn't mean exactly that investors are selling one to buy the other, it does highlight the market’s current sentiment.
Given the odds of strong economic growth and higher interest rates, plus wide differences in valuations, this could be a longer-term trend. Some traders may struggle to accept a shift toward cyclicals and value stocks, but it seems to be jumping off virtually every chart we view.
“Embrace change,” is one of our core values at TradeStation. Now could be the time to apply this principle in your own investing.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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