timwest

AAPL & AMZN _ which is which??

NASDAQ:AAPL   APPLE INC
773 3 4
Apple             and Amazon..... It is hard to tell which one is which... in this daily chart going back over 2 1/2 years!

This chart would make you think twice about whether anyone is doing any thinking at all about how to value these stocks OR are investors and mutual fund managers just poring money into these stocks blindly, owning them just because they have to own them to represent some index that they fear to lag.

This chart extends back to Feb 2009, and what I notice about both of these charts is that if they drop a little bit further, there will be quite a few people who will sell simply because the price is going down. The trendlines will break that go back several YEARS and that's when you want to cover your short positions and look for a bounce.

Until those trendlines break meaningfully, the short side of these two stocks is the least risky trade to take.

By: Technical Tim, 1:07AM EST 11/17/11
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
This chart is a real wake-up call to all investors. I continue to marvel at the reasoning and justification for such an alignment of stock performance. I think it is rather eerie and almost imponderable to decipher what is happening in the stock market when two such disparate companies have such similar fluctuations. Doesn't anyone else agree?
Reply
MisterA timwest
What you think about the prices? The trend is extermely identical, but i hope you can agree that Apple and Amazon have different ceilings.
Reply
Dear Mister A. (I didn't get this reply until now, Jan 11, sorry. I don't think there is a central messaging system for this site, but maybe they are working on that.) Here is what I think about the prices: I have no idea what really makes stock prices move other than everyone collectively following some system or methodology, coupled with hope, fear and greed. Throw in a dash of "portfolio managerism"*** and you have the recipe for strange behavior at times like this AMZN and AAPL pairing. (***Portfolio managerism is a term I just made up, but I can elaborate in a blog or a book someday. Essentially it is the collective behavior of people trying to "protect their ass-ets" or "protect their jobs" by selling losers and buying winners to show others how smart they are.) What is great is that since this 30 months of nearly identical price movement of such different companies, the two stocks have gone dramatically in different directions, which is WONDERFUL from my perspective. It looks as if there is now a very wide spread between the two stocks where AMZN may be oversold, cheap and bottoming (lower risk buy) and AAPL is once again over-extended and vulnerable with shorts having covered ahead of iPad3 and earnings due shortly (higher risk short). Again, sorry for the delay but I hadn't seen your question. What did you come up with over the past month on this topic? Cheers, Tim
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
France
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out