Tuesday, June 16, 2015

Apple and the New Dow Component Jinx:

I see Apple Inc as built a triple top on a point & figure chart. I love P&F charts because most of the squiggly line guys never use them.

Apple Inc was added to the DJII March 2015 suggesting that Apple is in transition from a growth stock to a value stock. In other words – the great 2001 – 2015 growth period may be over. Some past DJII growth to value stocks - Cisco Systems added in June 2009. Bank of America and Chevron added in February 2008, Intel and Microsoft were added in November 1999

Honeywell was dropped from the Dow in February 2008 and has doubled in price – now a true growth winner – Alcoa also doubled in price after being dropped in September 2013

Our chart – monthly of Apple Inc displays the progressively shorter growth periods – this may cause some momentum loss in the broader technology sector



dh12 said...

From my limited knowledge of P&F charting it looks to just repeat with candlesticks and line charts do. Just looks different. Technical analysts are constantly thinking they have found the holy grail in charting but they all end up failing.

Gettingtechnical.com said...


Apple became a DOW component March 19, 2015 at $127

Today July 24, 2015 Apple is $125 - I would say Apple is a one-trick pony
and is not the Holy Grail

Bill C