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WARNING ISSUED 12:15 PM — Apple has bottomed. Get long the stock. See below.
WARNING ISSUE 3:37 PM – If you’re a subscriber to the investment report — I think 95% of you are — it is very important that you read this page on crucial information (click the link) and that you read it today. If you were thinking about subscribing to the investment report, I would do that soon. If you’ve read everything in the investment report, the window for the full opportunity outlined in the report is closing. It’s better to take a draw down and get the full benefit than to risk waiting for a pullback and being priced out of the opportunity altogether.
10:10 AM — As noted in our posts for the last two days, the market and Apple would have to retest its lows before the stock can officially bottom. The market is down 170 points and yet Apple has retested its lows and is now rallying. I hope this presents a very important lesson to everyone. This is where you buy the stock, not on the way down. After we have some evidence of strength. This is very good strength. I think this is the bottom for Apple. There’s buying interest here.
10:31 AM — For those who also follow the investment report, I took a long position in Apple today based on the thesis in that report. So you should take a look.
12:11 PM — Apple has probably bottomed. If we get a breakout above the neckline, Apple is going much higher. Don’t drag your feet. I’ve laid out the case the best I can without walking you into the broker office and buying for you. If you’ve paid for the investment report, this is the day where I tell you. The biggest advantage of that report is starting to diminish. Pay close attention to what I’m doing. Classic inverted head & shoulders and it looks good.
1:15 PM — Ok. So we’ve gotten our rally to the neck-line. Now here comes the hard part. Right now, we’re still in a dangerous area. If Apple breaks this neck-line, I think we’re ready to rock and roll. But it still has to do so. Remember, we had the same set-up ahead of the WWDC and it ended in failure. It needs to break above $330 and I think at that point we could be read for a big rally. The SPY is also starting to look very good. But again, all of this depends on what Apple does here at resistance. The buying interest has been good all day. But how the stock reacts at resistance is the real measure of this buying interest.
2:15 PM — Apple is starting to struggle with that neck-line resistance. But no need to freak-out just yet. Sometimes an inverted head & shoulders will convert into an ascending triangle. This could be happening right now. As the chart below illustrate, if Apple pulls back a third time to the lower trend line, it’s possible that it could breakout from the triangle pattern which is also a very bullish pattern. It’s very common and during the QE2 rally, the SPY had multiple back to back ascending triangle that all panned out. I must have seen at least 10-20 ascending triangles between September and February that all broke out to the upside. In fact, we had an ascending triangle breakout just this past Monday on the SPY. We could be getting that here with Apple:
3:12 PM — Apple bumping against resistance again. If it gets above $130.00, it’s going to explode higher. Very bullish set up. In fact, the set-up suggests an intermediate move to $346.00 on a breakout. The measured move is calculated from the the $310 lows to the $328.00 neck-line or just about $18.00.
3:17 PM — Here’s the broad picture with Apple. The MACD on the daily is turning positive suggesting momentum is starting to turn to the upside. Apple showed a tremendous amount interest in the $320 area highly suggesting that this is indeed the low and it’s starting to breakout after 2 weeks of consolidation in this area. Moreover, Bullish Cross put an official buy rating on Apple which only happens when I’m very confident that we’re nearing a critical bottom. July is looking more pleasant by the moment. Apple just needs the interest to get it above $330 and we could be off to the races.
3:55 PM — Houston! We have lift-off. This is what happens you breakout. It’s going to be panic buying now. All the OMG I didn’t get to buy at the $310 level people are starting to rush in. Bullish Cross has been making a case for days. This is precisely why the daily commentary here is very important. Ascending Triangle / Inverted Head & Shoulders breakout after a retest of the lows at $320 as we’ve repeatedly mentioned for several days in a row now.
4:01 PM — Alright. That’s it for the daily commentary today. I hope everyone has been following what we’ve been doing. There’s always a very good reason for why we position the way we do. I’ll get to a full review of our commentary for the week. But right now, I got to pack up and get ready to bring everyone home fro the hospital. Pff. See how easy this is? Navigated a bottom while having twins!