Price Time Volume Investing

I discussed Apple Computer (AAPL) previously and was quite bearish. I continue to be long term bearish due to the length and magnitude of the move from 2003-2007. In the short term, AAPL is looking very bullish. Notice how price is above the 50/50 point and the cup of the cup-with-handle is tracing within the diagonals. This doesn’t happen often but is very bullish for high growth stocks after a long run.

The intermediate term chart is also bullish with a deep cup going down to a 50% retrace of the 2003-2007 move at the 3/8 time cycle. The short term chart is actually the handle of the intermediate term chart. This looks bullish to me also.

The only chart that looks negative to me is the long term chart of the move from 2003-2007. Price is currently at the 1:1 descending Gann Angle. I suppose there is no reason why price cannot break through the 1:1 angle. My biggest worry is that stocks do not have sustained up moves after correcting for only 1/8 of the time cycle. Based on this chart alone, I would sell longs at the old high (or at least place a trailing stop).

Post Modified: July 31st, 2008 at 11:45 pm

Tags:   AAPL · Cup with Handle · Gann Angle Fan · Growth Stocks · Price-Time Balance · Square of RangeNo Comments