$TSLA and market timing…(updated)

Not confirmed yet but if the market stays down it appears after 45 days of rally, the market may begin to take a tumble today.  And if today’s downside trigger follows through, there could be a full-blown correction in the making.

A couple of ifs in there but if they hold, it will be time to look around for stocks to sell if one currently holds them, or to short if one is an aggressive trader.

Case in point – TSLA.

TSLA, like to most stocks, tends to run with the market’s general direction, both up and down.

On the up, Tesla has had a great in run during this rally, roughly from 191 to (at the moment) 227, or 18.5% or so.  A profit well worth locking in since the stock can be volatile.

Now for the down.  Looking at the chart below, it appears the market may be turning negative (the green and red dots the middle of the chart) and so is Tesla’s stock.  When the market and the stock are in sync like this one needs to go with the market until the stock says otherwise.

In short, TSLA is a short.  That is if all the ifs above remain true at the end of this day.

UPDATE:

Market breadth did not stay negative on yesterday’s close (note the green dot instead of red on the indicator in the middle of the second chart below) so the short signal anticipated here never triggered and instead TSLA, on news (its charging station pricing) and modestly bullish day in the Nasdaq to back it up, had a nice rise today, 3.3% from today’s open. So it goes sometimes.

(right click on the chart for a larger view)

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(right click on UPDATED chart for a larger view)

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$AAPL analysts – the wrong advice and still getting paid for it

This, again, is what I love about Wall-Street Stock analysts.  They are so often more wrong than right that one wonders why they are getting paid anything to do what they do.

Take Apple Computer (AAPL) as the latest example.  Note the chart below from Finviz documenting recommendations for the last quarter – all except one being on the buy side with price targets ranging from a new high ground around 130 to as high as 179.  And only one downgrade in the bunch.  One.

AAPL closed today at 97.  All these analysts’ “Buys”, “Overweights” and “Reiterateds” came before now, higher up.

I suppose these guys have all sorts of fundamental reasons why AAPL should go up.  The company has tons of cash, many fine products, avoids  a lot of taxes, had a reputation for industry-disruptive innovations.

But the thing about fundamentals is, in the end, none of them matter if the price of the stock no longer agrees with them.

When everyone who loves AAPL, and buys its story, already owns it, one wonders if the analysts ever wonder who are they going to be able to sell it to;  when a company achieves a market cap north of $500 billion (let alone the $700 billion Apple bought for itself), one wonders is any of these analysts might wonder if history repeats – with the exception of Exxon-Mobil – every company reaching that lofty number has eventually had its stock cut in half.

A lot of these mistakes could be cured, or at least alleviated, by adding market timing to their analysis but I’d bet they would join the rest of the Wall-Street chorus harping that no one can time the market. No one. Fact is, it is they who can’t time the market.  One glance at a stock chart would not have hinted the stock was going down, it would have flat out said it was going down.

But since they keep getting paid despite being consistently wrong for whatever reasons, why should it matter to them?

Well…hard to believe, but maybe one day these guys’ clients might take note.

By the way none of this should be construed as investment advice.  As a solitary trader when I’m right only the market pays me, and when I’m wrong it takes it back.

P.S. AAPL is going to be a buy soon…for a bounce to $106 or so, maybe $111, but longer-term…mentioned above something about being cut in half so enough said.

(right click the image for a larger view)

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$AAPL could take a tumble right about now…

11/04/2015

Having underestimated Apple’s ability to buy its own stock ($100 billion worth so far since everyone else already owns it), AAPL has rallied higher than I expected after its plunge finally signaled the Aug/Sept down swings (they shoot leaders last) but it is now back up at resistance (sizable) and could sell off again, taking the market with it.

Sometimes it seems there is only one stock in the market.

Anyway, it’s been a nice 20 percent climb (that’s a lot of market cap), and could keep going (they have the cash), but might not, right about here.

(click on chart for a larger image)

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A longer view:

(click on chart for a larger image)

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