Google (GOOG) and Apple Computer (AAPL) were leaders in the bull market from 2002-2007. It is a good idea to keep an eye on them as the leaders will turn before the general market.
The price of GOOG is following the 2×1 Gann angle down and is below the 50% price retrace level. If a rally does come I don’t expect price to break through the 1×1 angle on the first try. The 26 week (180 day) cycle is approaching and a turn back to the 1×1 line may start at that time.
The price of AAPL is near the 2×1 descending Gann angle and below the 50% price retrace. Similar to GOOG, I don’t expect price to move through the 1×1 line on the first advance up.
The short term range of the strong move up in 2006 to 2007 shows price breaking through the 50/50 point a few weeks ago. Price has continued down to the 75% retrace level.
Neither stock looks in position to do more than bounce from here. One note is that leaders of one move may not be leaders of the next move. But at this point it is tough to find too many stocks in position to move up.
Tags: AAPL · GOOG2 Comments
2 responses so far ↓
agree with you here. with the consumer hurting, and apple being mainly a consumer stock, much of its performance will depend on that. One of the positive things about future earnings with apple is that with the way they account for iphone revenue, they will be able to smoothen earnings for a long time…(they book the cash at sale, but calculate earnings from that over 8 quarters, meaning that right now they have only booked 1/2 of the revenue from the first iphones that were sold). I expect a killer earnings report, and crappy guidance, which likely will lead to a further sell-off…then again, with my recent performance, exactly the opposite may happen…
Bought GOOG. For how long ?
Robert