Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Wednesday, December 5, 2012


Stock Market Technical Analysis Blog

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I am skipping over the broad market again tonight as today as it was another day of propping, a little more successful than yesterday. 

Last night I sent SMV OptionAlert subscribers another Day 50/108 option play of the same setup as yesterday's NFLX winner, but today it was a Pushdown 50/108 on AAPL, shown in chart 1.

After the open AAPL 540 Puts were priced at 0.46 for the entry and closed at 8.80 at the bell today for over 1500% intraday gain.  Just as soon as the 50/108 pushdown began this morning we had a second major bearish setup begin, the weekly SMV Sentiment EMAs pushdown shown in chart 2 which I have focused on many times in recent months.  

The combination of the two SMV alerted signals took AAPL down $37 as is shown in the intraday chart 3 and caused AAPL to drop through its Weekly 50 ema line shown in chart 4.

The stock market media suggested AAPL's drop today was from announcement of increased margin requirements.  The reality is that margin requirements were raised because of the peril that AAPL is now in from the double pushdown set up that began today 


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