Rotten Apples?

It’s a depressing thought because I consider AAPL a bellweather for the overall market but just take a look at its chart.  It fell out of it’s 11 month-long channel, came up to backtest that breakdown area and is now forming a triangle.  I hate to say it, but if AAPL falls [as strong as it is], I believe so will the rest of the market for a good, healthy correction.  Now in all fairness, some might say that AAPL is merely consolidating before another leg higher and they may be right; but the fact that it fell out of that long channel, however, gives me concern……….  Set an alert and trade whichever way it breaks.

Here’s another one.  Hartford Financial [HIG] although this POS stinks so badly, the 21d EMA is now below the 50d and pointed down.  I’d bend my typical “wait for a breakdown” rule and short this first thing Monday morning.  I’d even be happy to add to the position if it somehow crawled it’s way to $24.50 on some sort of news blip.  You could cover some at the 200d EMA but leave the rest on with a potential target of the 200d SMA near $18 for over a 20% gain.  Initial stop @ $25 and move down as you go.

Dow component, Travelers [TRV], broke down from its H&S and while I missed the beginning of the party, there’s still another 10% for this guy to cough up.   As with many breakdowns, don’t be surprised and get shook out if it comes back up to backtest that breakout area.  You’ll have to weather the storm or add to your position……..but yeah, the volume is there.  It’s puking and headed lower.

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