Google. Apple. Goldman Sacs. There is something interesting about these 3 stock prices:
- GS put in its 52 week high on 2/29/13
- GOOG put in its 52 week high on 3/6/13
- AAPL put in its 52 week low on 3/4/13
What’s interesting about this is that SPY peaked after these 3 put in their high or low.
GS, GOOG, AAPL have all been market leaders. GOOG & GS have led higher, while AAPL has been the major headline leader lower. What’s more, all 3 of these stocks are from the two most important sectors to to this market in my view: financials and technology. Their recent consolidation represents a potential inflection point in the overall markets, where a resumption of current trends, or counter trends, are likely to be the big story regarding all time highs or a short term top.
I believe the S&P500 will only move beyond 1,565 once and if GOOG & GS make new 52 week highs. Should those two stocks fail to make new 52 week highs, I would look for AAPL to rally higher. My feeling at present is to keep shorting AAPL and buy the recent weakness in GOOG & GS. As a result of that inclination, and based on what I said above, then my expectation remains for new highs in the S&P500. However, if by the end of this week GOOG & GS break below $820 and $150, respectively, I will look to shift to a short trade on SPY and long on AAPL.
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