Last night I recorded a new video providing some analysis and projections with specific attention to AAPL, SBUX, and QQQ. I also put the price action of these issues into context of the forecasting information provided in my Trader's Crystal Ball eCourse.
The QQQ continues to develop into a possible head and shoulders top formation, which suggests a possible sharp downside resolution to its current trading range. Sentiment is also confirming the optimism that would be expected as stocks make a top, and also is displaying bearish divergence in several real money gauges of sentiment.
Collectively, commercial stock index futures traders have apparently been forced to be covering a build up of short positions from this fall. While it may take weeks for that process to unfold, and typically lead to some further upside in stocks, the various indexes are mixed with the Nasdaq having already greatly reduced its short position to neutral on the Sept-Nov decline. Once the commercial short-covering is complete in other indexes, we may see a sharp market correction.
I have re-opened a discounted enrollment period for my Harmonic Trading Stock Selection service in light of several outstanding current opportunities, and the anticipation of a possibly significant trend change if the Nasdaq completes its head and shoulders top. Details are in the video as well.
Pete Birchler
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Its amazing to watch how much investors can fall in love with a stock. Its also amazing how close the so called experts are in line. For example for every 10 stock market experts that are positive on a stock like apple theirs usually only one or two that are negative on the stock. that was really the case with a hot stock like apple less than a year ago. Investors always tend to follow the most popular stocks even if theirs really no good reason to.
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