2% more till the right shoulder of the Naz, & if SPX follows suit, thats right on its 161.8% fib extension from Nov 2012 lows, & also a multi year high. A suitable place for the bear to appear it seems.



Apple trade & other updates

Went long Apple last week at 493, sold all today at 508.7 at market open. Apple has been popping at the open & fading, so took the trend opportunity to close out the trade. Holding into earnings is a huge gamble, so Im taking it easy as there will be new trade setups depending on the results.

Overall SPX is very complacent, with low volatility & mostly bulls. No hurry to do anything now as this basically means bigger & better trades with patience exercised.

Banyan Tree Holdings

Banyan Tree has fallen >40% from its 2010 peak, but recently has been forming a bullish ascending triangle & could be at the beginning of a secular bull. Target price of 0.80 if clears 0.71 & stays above. Short term support/resistance is 0.63/0.71.  Ideally it pulls back to 06.3-0.64 before ramping back up again.


Apple update

Tom Demark called Apple’s bottom yesterday. He described himself as a timer, not a technician, so lets square up the current technicals for Apple. Its sitting right above its 100WMA & a long term trendline extending from March 2009. Assuming there isn’t another great crisis coming, this can be seen as a strong support. Weekly RSI hasn’t been this low since late 2008 to early 2009.

Short term resistance would then be 505 followed by 529.



It seems the 100WMA is more important than the 50 or 200WMA for the SPX. Since 2010, the 100WMA has been a strong support line, therefore I would imagine the next decline to be no different. 1400 is line in the sand which also is 23.6% fib retracement of 2000 high (secular bear theory). Strong break/reversal from there is telling. RSI support trendline is also quite clear.

SPX 150113

Zynga update

Zynga has followed through on its ascending triangle & rose to a short term top of 2.70 yesterday, despite the Nazz closing -0.26%. I was long at 2.48 & sold all at 2.68 for about +8% in 3 trade days.  Lots of contrarian traders eyeing this stock, & it’ll remain on my radar.


One of 2012’s best performing stock indexes seems to have reached the top end of its multi-month rising bear wedge, so short/intermediate support would be 7500/7000 respectively. 7000 is near its 200DMA & 50% fib extension. The DAX has fallen every time its weekly RSI hits around 67, with quite a clear lower weekly RSI support trendline as well.