Why Apple and the US Dollar are a Buy.

The Apple (AAPL) and the US Dollar index are currently set up in positions that can offer great risk/reward ratios. Both tested (and broke) long-term support and are set up to bounce hard.

Apple (Daily):

 

As you can see above Apple made a low for 2016 and then recovered. This is occurred at long-term support and was potentially a bear trap. If price takes out Friday's high, then apple can potentially close the gap. 

 

Apple (Weekly):

 

Apple's price on the weekly basis is sitting on its 200 day moving average. This is a key decision area being long term support. Again look for a bounce from here. 

 

US Dollar (Daily):

 

 

The US Dollar index is set up in a similar position to apple. Price made a long term low at key support then bounced. Would look for price to continue bouncing.

 



 US Dollar (Weekly):

 

 

On a weekly basis the US Dollar Index is sitting on its 100 day moving average. While the 100 day moving average is not as important as the 200 day moving average, the hammer that was formed on it suggests a bounce. 

 

Technical Analysis Review 6/8/15

Key Points:

• Major indices remain range bound

• Bonds broke down from short-term range

• Europe broke down key support last week

• Internals are showing weakness.

S&P 500 (Daily):

The S&P 500 remains in its multi-month range. On Friday it formed a potential reversal candle near the ascending support. As such, a reversal can be expected early in the week.


TLT (Daily):

Bonds closed right under key support. If it stay below this level then one should expect the downtrend to continue.

TLT (Weekly):

On a weekly basis bonds are testing its 200 DMA. If a reversal candle forms on this level then one can expect a reversal.


VGK (Daily):

Europe broke down last week. One should expect Europe to test its 200 DMA.

NYAD (Daily):

The New York Advance Decline Line broke through its recent swing low last week. This deteriorating internal indicator is a minor warning signal in the bull market.

JNK (Daily):

JNK broke down from its channel last week. One should expect JNK to test its 200 DMA.

Technical Analysis Review 5/25/15

Key Points:

• S&P 500 is in a short-term consolidation above major support

• TLT is consolidating under resistance

• Oil is in a short-term consolidation

• US Dollar breaks above resistance

• Euro breaks through support

S&P 500 (Daily):

 

S&P 500 broke above major resistance last week. It is currently in a short-term consolidation and it is expected the uptrend will continue.

 

TLT (Daily):

 

 

Bonds have broken multiple support lines and is currently in a short term consolidation. It is expected that the downtrend will continue.

 

 

WTI (Daily):

 

 

Oil is in a currently in a short-term consolidation. It is expected the uptrend will continue.

 

US Dollar (Weekly):

 

 

After breaking major support, the US Dollar broke again above it. A trader should target the recent highs but be wary that a head and shoulders pattern may develop.

Euro/USD (Daily):

After breaking up from a double bottom, the Euro broke down through support. The recent swing low should be the target.

FXI (Daily):

 

 

China is current in a intermediate consolidation. It would be expected that the uptrend will continue.

Technical Analysis Review for the Week Starting 5/18/15

Key Points:

• Major equity indices remain in multi-month range

• Oil remains in short term range

• Europe continues uptrend

• US Dollar breaks support

S&P 500 (Daily):

 

The S&P 500 remains in its multi-month range. A close at new highs would be indicative that a new uptrend will start.

 

WTI Daily:

 

 

Oil remains in a short-term range between approximately $59.00 and $62.00. Due to the recent uptrend it would be expected the break of this range would be to the upside.

 

VGK (Daily):

 

 

Europe remains one of the best performing markets YTD. After breaking its recent consolidation, the uptrend is still in full force.

 

US Dollar (Weekly):

 

 

 

The US dollar broke through its recent support last week. It is expected the US dollar has further downside.

Technical Analysis Review for the Week Starting 5/11/15

Key Points:

• Major US equity markets remains range bound

• Bonds are giving mixed signals

• Oil is retesting short term support

• US Dollar is sitting on resistance

S&P 500 (Daily):

 

The S&P 500 broke down early in the week but recovered at the end of the week. If the index can close at new highs then one should expect the uptrend to continue.

 

 

TLT (Daily):

 

 

TLT has two significant support/resistance points on the chart. One is annotated by the trend line and the other one is the 200 day MA. Price is currently between the two giving mixed signals.



WTI (Daily):

 

WTI broke through its short term resistance. It is currently retesting its breakout point and the uptrend is expected to continue.

 

 

US Dollar (Weekly):

 

 

 

The US Dollar currently has support on its 20 day EMA. If the dollar gets a bounce off of support it would be expected that the US dollar would retest its highs.

Technical Analysis Review for the Week Starting 5/4/15

Key Points:

• Major equity markets pulled back from recent highs

• Bonds continue downtrend

• US Dollar breaks down from minor support

• Oil breaks through short-term resistance

S&P 500 Daily:

 

The S&P 500 briefly tagged a new high then pulled back. On Thursday it briefly broke through its short-term uptrend but recovered above it Friday. It is now back into a trading range.

 

Russell 2000 Daily:

 

 

Small caps were the hardest hit last week. Unlike the S&P, Dow, and NASDAQ, the Russell 2000 closed below its 50 day moving average.

 

TLT Daily:

 

 

Bonds continued its decline last week after breaking support. It currently has support at its 200 day MA and the noted trend line.

 

US Dollar:

 

 

The US Dollar continued its downtrend after breaking through its recent consolidation. It is currently testing its support at ~$95.

 

WTI Daily:

 

 

Oil broke through its recent resistance at $58.68 last week. It is expected the recent uptrend will continue.

 

VGK Daily:

 

 

Europe (un-hedged) broke through resistance two weeks ago and it is currently retesting its breakout point. Its anticipated that the uptrend will continue.

 

HEDJ Daily:

 

 

Europe, on a hedged basis, has shown a very impressive YTD performance. It is currently up ~21%.

 



Technical Analysis Review for the Week Starting 4/27/15

Key Points:

• S&P 500 testing all-time highs

• Advance-Decline line at all-time highs

• Nasdaq broke out to relative highs and is close to all time high

• Bonds broke support

• Europe at YTD highs

S&P 500 Daily:

 



The S&P 500  is currently testing all-time highs. With the Advance-Decline line at all-time highs it is expected that the S&P 500 will break through to all time highs and continue its uptrend. The danger here is a pullback to trap the people going long the breakout to all-time highs.

 

Nasdaq Daily:

 

 

The Nasdaq broke out to relative highs and is currently very close to all-time highs from 2000. It is expected that the Nasdaq will test all-time highs at a minimum.

 

 

Russell 2000 Daily:

 

 

 

The Russell 2000 which was briefly leading recently, lost that status in the last week. With it being very close to all-time highs, a lot of significant should not be placed on its lost leadership status.

 

NYSE Advance-Decline Line:

 

 

The Advance-Decline Line made another all-time high this week. Due to its leadership status, it is expected that the general indices will follow.

 

TLT Daily:

 

 

The bonds broke through its multi-week support with conviction last week. It is currently testing its breakdown point and it is expected that bonds will continue down.

 

WTI Daily:

 

 

WTI has been consolidating since its recent breakout from resistance. Due to its recent multi-month breakout, it is expected that WTI will continue up through the recent consolidation.

 

 

VGK Daily:

 

 

Europe YTD has been acting very strongly. It is currently up ~13%. With its recent breakout through its consolidation, it is expected that it will continue its uptrend.