Yale & Jeff Hirsch
About the Editor Jeff is editor in chief of the Almanac Investor newsletter Stock Trader's Almanac, StockTradersAlmanac.com, and the Hirsch Organization. He makes frequent appearances on CNBC, CC, Fox, and Bloomberg. Yale Hirsch is founder of the Stock Trader’s Almanac.
On tomorrow’s date in the Stock Trader’s Almanac 2012 on page 43, it is noted that April is prone to weakness after the income tax deadline. A possible reason for this is traders and investors need to raise cash through asset sales in order to cover their tax bills. In the charts of Google (GOOG) and Apple (AAPL) below, it would appear that traders have begun selling early this year. GOOG has been under pressure since late March and AAPL has been down for five straight days through today’s close. Due to their heavy weightings in the NASDAQ, NASDAQ 100 and S&P 500, these indices suffered losses today while the DJIA advanced a modest 0.56%. Both charts and their respective technical indicators are looking weak. Both the MACD sell and stochastic indicators are on sell and relative strength is anemic. AAPL is still well above its 50-day moving average, but GOOG slipped below today. GOOG’s chart however, does not look as overextended as AAPL’s. We have not been as optimistic as others recently over AAPL’s near-term prospects. This may be just a long overdue pullback, selling to pay tax bills or it could be the beginning of a more meaningful pullback. Not a subscriber? Sign up today for a Free 7-Day Trial to Almanac Investor to continue reading our latest market analysis and trading recommendations.
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