AAPL rising earnings does not equate into a healthy US economy.
While today is not exactly the scenario I would have like to play out after AAPL released earnings it's just one more example of how delusional the market is in regards to what is considered reflective of a growing economy. The effect of this earnings report on the general markets is impressive and scary as you can't eat Ipads. You Iphone won't stop the bank from foreclosing on your home. And while you can certainly go on LinkedIn with you Mac, it won't land you a job. Add in the fact that the majority of Apple's products are produced in other countries should illustrate the mirage that has been painted about Apple's contribution to the US economy.
My timing signal remains bearish and we are still below key resistance areas on my charts. I'll likely be adding to my short positions near the close or I may wait until tomorrow. It will depend if we rally into the close. If that's the case I may wait until tomorrow and hope for a gap up as that may be all the market has left.
Key areas of resistance on both chart indicating downtrends persist:
- Inability to get above 70 level on RSI on 60 minute chart
- 50 day ma on daily chart should act as resistance and volume remains light on the indexes
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