With apple's earning tomorrow after the close i thought it be prudent to take a look at it and see whats going on behind the scenes.
First off how is it performing compared to its brotherin:
This chart is the last 10 days with the stocks in the Tech sector overlaid onto eachother, What I have been researching is that the market has stages, allot like a rocket into space. each stock powering it into the atmosphere only to fall away one by one. but unlike the earth stocks dont get to orbit, once the thrust weakens they cant help themselves.
:lookoutbelow:
Supply and Demand I now beleive comes from one very simple aspect, the very fisrt thing we all learn. PRICE.
Price will :blast-off: when there is demand
Price will :lookoutbelow: when there is no demand
not surprisingly if you look at the few stocks on LH of the chart they all gained, becuase they had demand, as they began to peak the tech sector could no sustain the levels and a crorrection was made until demand returned. There was great buying opportunities on these. (i will discuss later)
Apple continues its sideways and downward pressure, as with the tech sector fo the dow (notice how AAPL is a large aprt of the movement since being added). While I dont do earnings plays if this continued into tomorrow I would think this could be smart money taking profits at the highs and knowing AAPL might be a miss here.
Compare the action to the stocks that bottomed on LH of chart, they even gained into earnings against market trends, INTC barely got a blimp on our hard selloff then jumped on earnings, this can all be seen and derived before hand by price alone.
comparing a instrument to a set of instrument can help to show relative strength and is the pure basis of market interplay