Wednesday’s asphyxiating tedium was a reminder that DaBoyz are in no rush to take stocks higher, especially if the short-covering needed to do so is absent. Usually, bear buying-binges are driven by “good” news. On this particular day, however, the headlines concerned a State of the Union speech that held little interest for Wall Street. Toss in the usual bilge concerning political bickering, Mueller’s supposed investigation and such, and you begin to see why ginning up a rally would have been so difficult.
Nevertheless, the chart of AAPL (see inset), which has regained its leadership status as the bear rally has progressed, looks constructive. One could argue that the stock, as well as a few others controlled by institutions, are in a bullish holding pattern pending “news” capable of goading bears into doing some heavy lifting. It’s hard to imagine what the news will be, although rehashing the Fed’s policy shift toward “not tightening” has gotten fabulous mileage so far.
Rick- Thanks for your reply.. I am a subscriber. By the “few others controlled by institutions” do you mean BA, AMZN, FB, GOOG, NFLX, MSFT, HD? Have I guessed wrong and/or missed one or two? As one of the “new guys,” another thing perplexes me… Who are these institutions, DaBoyz among them, that control the market and whose veiled, and perhaps coordinated, actions have led you to conclude that the market is rigged (which assessment I don’t disagree with)? Do these institutions have names (just a few to give me a sense, please) and is the list pretty darn long? I still think that it would be helpful to explain what it is about the AAPL price action that presents a bullish outlook (in your view)–especially if it isn’t its general ascent of late.