Monday, October 15, 2012

A blow Off Top

Peter Brandt, my favorite Trader gives an example of what could be a blow off top in Apple. You can read the full post here.

Apple has moved up from its year 2000 lows, by almost a 100 times. Yes, about 100 times the price 13 years ago. Now, there is a sense that a parabolic rally may have come to an end, suggesting a blow off top. Such tops, if confirmed, may result in multi year declines / trading ranges.

An interesting aspect for Indian Traders is the fact that we can actually buy Apple if we want to trade on the long side. the RBi allows us to invest in equities abroad. Can we also sell Apple? I do not think that the RBI allows short selling in international stocks or, any investment in margin trading. Therefore, In India, we can just watch the Apple stock and check out if peter Brandt gets it right.

 

1 comment:

Khush said...

thats very well explained about apple . its a great example of how technicals can help indviduals to trade with confidence .... i wish i could go short on apple ...