Just in case you thought AAPL was dead (or rotten), here’s apple juice in your ear. That gap from May has been closed with an eye catching (if not ear catching) gap. Buy signals all over the place. We are always amused to see the financial press get egg on its face over Apple. Do not trust anything the media says about Apple. Listen to what the chart says. Meanwhile, tracking Alice closely…
Looking at things in the fun house mirror… Treasury rates go down the rabbit hole to negative rate returns (not here yet, but what about it as an idea…)
Sorry –no link.
Drive Treasury rates down to 1.83 and send money sloshing to stocks. That drives up stock prices. Ruining value investing. Because values are too high. Our take on this: It is what it is. The valuation of the market is what you get if you call your broker and say sell my wonderland stock. Oh, and by the way I want the CAPE adjusted price. After teaching you some new curse words the broker will tell you to sell it to Shiller. But you will be like all other investors. The market leaves you no alternative. You have to accept the facts of wonderland — or put your capital under your mattress.
Edwards & Magee readers have the advantage over the others at this tea party. We can draw a trendline, or set a basing point and leave the party if the trend changes. We never fear to put down a bet. Because we always know where the stop is and what the risk is. We also know what the trend is. A letter on this subject will occur somewhat farther down the rabbit hole in the reality of time in the dog days of August.
The short and medium term and long term trends are up. We have made an ad hoc analysis to determine stops for the present situation: 1931 which we get from the low at 1991 with a filter of 3%. The upside potential of the market we explored with the rule of seven in our last letter.
We will be speaking at the TSAASF conference August 20. You can get details on it at tsaasf.org. Public welcome.
Oh, and by the way, don’t drink anything from unidentified bottles.