Wednesday, October 24, 2012

Sellers' eagerness yesterday to shred minor supports implies that they're not yet done.  My hunch is that AAPL will be continue to be buffeted by severe crosswinds this week, with stellar Q3 earnings ultimately unable to overcome the downforce of a stock market that has caught a pungent whiff of a recession that has probably already begun. Traders nimble enough to play the bounce should look for one near the 602.09 target of the pattern shown.  As always, the 'chopped liver' rule holds:  If sellers crash the target, more weakness should be expected (and rallies sold/shorted).

If you’re a silver investor or trader, you know what a difference great timing can make. Join us after the NYSE close on Tuesday, October 30, for a technical look at the charts of some popular silver vehicles, including Comex futures, a selection of senior and junior mining stocks and some heavily trafficked ETFs. The hour-long session will be hosted online by Rick Ackerman, editor of Rick’s Picks, and will allow 20 minutes for your specific requests. Click here to register for this one-time event, a must for anyone who is interested in silver.

Notice that yesterday's selloff (see inset) has created a bearish impulse leg of daily-chart degree, since the structural low at 1414.50 that it breached, diminutive though it be, is a legitimate 'external' low.  Camouflageurs should look on the 5-minute chart for places to short an uptrending abcd, but officially we'll wait for a C-D downleg to develop so that we can get a read on sellers' fears at its p midpoint.