Bears Upset the Apple Chart

I listened to another episode of Michael Covel's podcast this week that talked entirely about Apple stock.   As usual, Covel did not specifically discuss how to trade Apple, but I found myself agreeing with everything he said nonetheless.   The core message of the podcast was that there are an infinite number of analysts, news articles, opinions, forecasts, fundamentals, etc..., but all of this noise can be eliminated and a clear, objective decision can be made by focusing instead solely on the price action:

The chart above shows Apple's short term trend ending on October 19th.   This means that had I owed it, I would have sold it at that point.  More recently, the long term trend also turned down, which indicates that Apple could be shorted, but only if the general market trend was also down.

So, the bottom line is that I would simply not touch this stock at this time, neither long nor short.


Meanwhile, another tech stock that is sending the opposite signal is Google.   This stock hit a new all time high on Friday and also has, in my opinion, a very constructive long term pattern:

The chart above is a monthly chart and goes all the way back to Google's IPO.   What I find constructive is the stock's multi-year consolidation pattern and breakout.