Another look at Apple (AAPL), and some confirmation with Skyworks Solutions (SWKS) (January 05, 2016)
I’m going to go back to Apple ( NASDAQ:AAPL ) and also Skyworks ( NASDAQ:SWKS ), which I’ve covered recently, because I think it’s important. I think it’s really important, because everybody loves Apple ( NASDAQ:AAPL ). So this is what I want to mention today: if we were to take out this day here, which I hate doing, as a guy who looks at charts and believes that all prices matter. To be perfectly honest, it’s a little intellectually inconsistent to just say, “Okay, well if we take out this or if we take out that then this is happening and that is happening.” So with that said I’m going to go ahead and do just that, and this is why: because everything went down, everything fell on this August 24th day. This was the big deal.
But what I want to show you is what this looks like without this big low. This is what it looks like, and can you see the difference? Now, I can draw a line across here and I’m seeing a left shoulder, Larry, Moe, and Curly (I don’t know why I said that), and then a right shoulder. Now we’re looking to breaking this neckline. This is about a textbook head and shoulder pattern with just kind of a complex head, otherwise known as a triple top. So when Apple ( NASDAQ:AAPL ) falls as low as it has, this is a new low, I get it, yesterday was a little lower, but it’s a new closing low for 2015. You have to go back to 2014 to get a lower close in Apple ( NASDAQ:AAPL ).
What I’m suggesting is, that you watch $100.00, I think, “sure as shooting”, this stock will bounce at $100.00. But if this stock does not bounce at 100.00, or if it’s a little weak and then ultimately goes lower, I’m telling you, a 2 percent dividend is not that big a deal. If that’s why you’re holding the stock you’ve got to hold it for more than a year just to make up what you lost today. Now, I want to look at Skyworks Solutions ( NASDAQ:SWKS ). See how having this in here kind of changes the complexion a little bit. It doesn’t really look that bad, if you tend to be bullish.
But then if we look at Skyworks Solutions ( NASDAQ:SWKS ), guess what day this is? August 24th as well. If we take that out and look at this. What do we see? We see a stock that broke down here, lower high, and just continues to print lower highs and lows. The 50-day moving average, rather than being support like it was here, is now resistance. So what I’m suggesting is, with Skyworks Solutions ( NASDAQ:SWKS ), a big supplier of components for Apple ( NASDAQ:AAPL ) ,and Apple ( NASDAQ:AAPL ) doing this, and actually Avago ( NASDAQ:AVGO ) doing this, you want to stay away from this stuff. I’m just telling you, there’s other places to go, such as some of the consumer staples. Just buy the XLP and you’ll be fine, if you want a long-term hold.
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