Premarket: Apple was red, turned green

apple premarket mcintosh 8-20-21From the Wall Street Journal’s “Dow on Track to Erase August’s Gains as Futures Slide" posted early Friday:

Stocks have been rocked this week by concerns that an uptick in Covid-19 infections globally and a slowdown in China’s growth could impede the economic recovery. Worries about rising inflation levels and the Federal Reserve’s signals that it will scale back some of its easy money policies are also weighing on sentiment. New lockdowns to contain the virus could put further pressure on supply chains, investors say.

“We’re looking at a period of very strong, but also very uneven global growth over the next couple of months,” said Hugh Gimber, a strategist at J.P. Morgan Asset Management. “The government reaction now looks very different across different parts of the world. If inflation does prove to be more stubborn, it could change how quickly the Fed has to tighten once they get going.”

The Cboe Volatility Index, a gauge of turbulence in markets, rose to its highest level since May.

My take: Volatility, thy name is Apple. Yahoo! Finance, for what it's worth, sees in Apple's behavior a neutral pattern called the Commodity Channel Index. From Investopedia:

The Commodity Channel Index​ (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.

Developed by Donald Lambert, this technical indicator assesses price trend direction and strength, allowing traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.

UPDATE: To give you a sense of how changeable these things are, Yahoo! Finance's trend watcher program now see a Bearish Williams %R pattern.

3 Comments

  1. Romeo A Esparrago Jr said:
    AAPL still a bargain. Whilst supplies last.

    2
    August 20, 2021
  2. Jerry Doyle said:
    I have an investor friend who follows his trading algorithm platforms as if they are his Bible for living life. When it comes to Apple, those algorithms have cost him millions of dollars if instead he had remain the Duracell battery of holding Apple long. My dear friend gets deep in the weeds with his algorithms. I listen patiently as he explains to me what I need to do knowing that my holding Apple long term has served me better than his algorithmic changing investment lifestyle. My friend reminds me much of Paul’s description of the conflict within us (Romans 7:15-25); he seems captive and enslaved to his investment algorithms and inevitably ends up doing what is wrong following their lead, a perpetual struggle for him.

    1
    August 20, 2021
  3. Kirk DeBernardi said:
    I learned a long time ago that our brains are stimulated from birth and for the remainder of our lives by identifying patterns leading all the way up to — dare I say it for investors — predictions? A “nature of the beast” kind of thing.

    Identifying patterns is one thing, but knowing what to do because of them is another.

    Identifying and being reliably accurate? Tough.

    Identifying, being reliably accurate AND doing so consistently? Damn near impossible.

    The Holy Grail of the investing game.

    1
    August 21, 2021

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