following is quote from today’s article by Nigam Arora on Marketwatch.
“When Apple AAPL -1.35% staged a technical breakout from micro resistance at $525, I issued a signal to trim any Apple positions.”
and…
“I have not turned a bear on Apple. Since recommending Apple when it was at $131, I have been a big Apple bull. I was writing that Apple stock could go to $1000 long before Apple became a popular investment.
I am also not bearish on the stock market. Our adaptive algorithms ,i.e., the algorithms that automatically change based on market conditions, continue to show that unless something changes, any correction will be shallow.
The systems at The Arora Report analyze trading patterns and combine the statistical conclusions from trading patterns with a bevy of macro, fundamental, quantitative, technical and other relevant pieces of data to generate actionable signals. These algorithms concluded that the trading pattern Apple was experiencing just prior to the signal to trim the position showed that Apple stock was vulnerable in the short term. Trading patterns also showed that the smart money (sophisticated investors) was also trimming positions in Apple.”
SOURCE:
http://www.marketwatch.com/story/why-i-trimmed-apple-at-525-2012-02-16
conshmillo 4:28 pm on February 16, 2012 93 days ago Reply
One could just skip the fancy lingo of “adaptive algorithms” and say, hey, there is a bearish engulfing candlestick pattern that usually indicates reversal (Wait, that sounds fancy too
). But hat’s off to him for docking another $25.00 from our call on weakening trend at Traderhood on Feb 13th!
Birra 1:19 am on February 17, 2012 93 days ago Reply
It’s no wonder why AAPL never reaches its proper valuation. However, ‘sophisticated investors’ is a nice euphemism. However, thanks for having the intestinal fortitude to own up and offer your rationalization.