Daily Archives: July 28, 2011
11:15 AM — Apple looks like it could be producing a potential inverted head & shoulders on the 2-day (1-minute) chart. Yet, we’re still in the formation of the pattern and a bounce today was inevitable in the markets after yesterday’s sell-off. So this could be mostly a product of just a technical bounce. But here is how the pattern is unfolding:
In what seems ages ago, I published a well-detailed warning to Apple investor about what could potentially end the whole party. On July 12, I warned about a potential major head & shoulders top forming on all of the indices. I’m going to republish this analysis and update it at the bottom of this article given what we saw today:
Trading Apple & the SPY this Week
Tuesday, July 12, 2011
The one thing that keeps someone in my position up at night is not “how do I create value and profitable situations for my readers.” The question of how to make money is no longer an issue for me. It really isn’t all that difficult to make money with various investment strategies.
No. The hard part is being able to recognize when the equity markets might be headed for a crash. Being able to recognize the warning signs ahead of an impending market collapse is where the true value of an financial publication lies. Preventing catastrophic losses, not making oversized gains, should be the number one priority for every investor.
The market could take a huge dump at any moment, and this is the biggest risk we take every day we step foot into the markets. Over the past several weeks, I’ve repeatedly noted that the S&P 500, DJIA and NASDAQ have been forming a potential massive head & shoulders top pattern to this 2009 – 2011 bull market. Continue reading