Ian Woodward's Investing BlogStock Market: AAPL Just What the Doctor Ordered!
Now we know that the Stock Market is driven by the focus on just one stock. We have had this situation before but not to this extent…think of IBM, MSFT, INTC, AMGN, YHOO, AAPL, GOOG, AMZN in their Hey-Day and now AAPL again…but never to this extent.
Now we know for sure “As AAPL goes, so goes the Market.” A whopping 2.3% rise in the Nasdaq, 2.69% in the NDX, and 8.87% in itself, together with a Big Kahuna, a humongous 5+ Buckets up in one day, and a Gap Up that took it from below the 50-dma to above the 17-dma.
But now comes the real test…Can it avoid a Head and Shoulders Top and pull the Major Market Indexes up by the bootstraps as they are showing the same formation?
At least we have a “Cushion” all around, and especially with the VIX which after a turbulent two weeks has calmed down to the Quiet Zone again:
…And here is another view showing the kerfuffle over the last three weeks, but the %B x BW (Woody Indicator) is back to green territory confirming that we have a cushion:
This next chart is again encouraging with the numbers improving to the right with a dash of green. Of course there has to be a follow through with similar strength for this not to be a one day wonder.
Let’s see what the next couple of days bring, but the Bulls can be thankful for small mercies!
Best Regards,
Ian
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