Market Overview

Apple Anticipation, Microsoft Interest, Cerner HFT Risk And Technical Extremes

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Apple (NASDAQ: AAPL): In anticipation of huge interest from the average investor, AAPL has had pre-market and after-market volume surges. Although the stock did not move up Friday after huge pre-market volume, the expectation that the split will create higher demand for the stock has triggered plenty of pre-split professional trader activity. Meanwhile, one or two giant funds using Dark Pools have been quietly lowering held shares.

Microsoft (NASDAQ: MSFT) tested its prior platform highs on Friday, forming an indecision day candle pattern. The overall platform has been angling upward as it forms higher lows each day. Volume was low for MSFT Friday; however, the consistency of larger lots incrementally buying over time remains steady.

Cerner Corp (NASDAQ: CERN): After running up with momentum patterns on falling volume, the price pattern of this stock is weakening as it continues to bottom. Volume continues to decline as it nears support. High Frequency Trading (HFT) is an increasing risk due to the recent gains.

Xilinx Inc. (NASDAQ: XLNX) is forming the new bottom formation called a Basing Bottoming Pattern due to a shift of sentiment after an HFT gap down which was followed by smaller funds and retail chasing the spike of volume created by the typical one-day action. This dropped the stock right into the buy zone of the Dark Pools from 2013. Selling short is very high risk at this time for XLNX.  Base Bottoms tend to develop similarly to platforms.

General Market Technical Analysis: Although many technical traders are assuming the market is at an extreme, the long term trend of the major indexes is not showing an extreme peak. Certainly, the S&P500 index is over-extended on average volume levels on the daily chart. Speculation has entered S&P500 index components which can, at times, go beyond technical extremes.

Martha Stokes CMT

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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