etfmsolutions: Apple Falls From the Tree....07.21.15

Tuesday, July 21, 2015

Apple Falls From the Tree....07.21.15

Expectational analysis suggested Apple might not be another Google and this morning's mini-selloff in Apple was an omen that insiders likely knew what was coming and were taking positions off the table. If you think I'm paranoid then you better read up on Steve Cohen and a few other high profile hedge fund managers who made gazillions by finding insiders to leak earnings reports and then trading according.
The M3 models are now all in cash and one worrisome item I've noticed recently is the increasing number of analyst downgrades to the "Blue chip" sector components. This sell side skew has been building for a few weeks via www.theflyonthewall.com (paid site) and we may be starting a leg down here. Apple is down about $10 after hours but may recover by the AM. The earnings report wasn't bad it just wasn't the blow out numbers that optimists had been hoping for.
The VDX SPY update now shows SPY at longer term overhead resistance with flat momentum and waning volume.

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