The volatility in the market has expanded in the last 2 months. Much new information has been revealed and the market is now digesting that information forming patterns that could unfold into a major trend whether it be up or down.
Below is some crucial events and fundamental information I have taken into account:
The Indexes have tested lows to rally in the past few weeks. As long as the moving averages are in a bullish state, we can expect prices to go higher and continue to be in a bullish mode. However, ALL TIME HIGHS are quite a distance. Considering the financial state of of the US Economy, reaching those bullish highs may be a rough ride.
Steve Jobs Dies- This is more serious than the markets perceive. The stock price remained stable despite his death. If history is an indication of future results……AAPL will crumble and have a slow death. Jobs was fired from Apple in the past, and the results were disastrous. Upon Jobs return to Apple, he was able to revive the company. Steve Jobs permanent exit will hurt Apple. —-Mr Jobs we will miss you. Thanks for everything.
Apple’s chart is stable for now. No heavy selling on the volume side. However, the price action is moving along the 200 EMA. The stock is starting to show signs of saturation as robust breakouts are harder to find. I would be very cautious if Apple stock breaks below the 200 day EMA. As soon as the averages go bearish, I will be looking for shorting opportunities at critical price levels. – Good luck.
Netflix (NFLX) just got destroyed in the last few months, coming from an all time high of $300 a share down to $90. The companies restructuring of services and fees have caused users to cancel subscription. The business model is great, however increasing competition has brought down future growth prospects in the financial state of the company. Streaming content is the future, and I will be searching for companies that are an alternate choice.
Greek Bailout Chaos- Greece says they will get bailed out. Then the morning news says, that it may default and leave the EU. From the looks of things, nobody know what to do. men in power lack the conviction to follow through on any solution. The markets will also be responding in uncertainty. I will just be watching the crucial price levels and trade from there.
