Forget The Story, Watch Prices
- Posted by JC Parets
- on January 15th, 2013
Monday afternoon on CNBC’s Fast Money program, Chris Verrone of Strategas Research came by and brought some charts along. I wanted to share this clip because I think he did a fantastic job of filtering out all the nonsense and pointing to pure price behavior, both absolute and relative.
My favorite line was: “Apple has no relative strength right now. It has been underperforming the S&P for the last 11 months. We went back and looked at the last 10 years of Apple price history. This is the longest Apple has lagged the market in over a decade. We don’t think that’s how stocks in a bull market act. We’d be fading this rally if we get a bounce off 500 here. We think looking longer term that 430-440 level is a more appropriate area to start looking for a bottom.”
You see how simple yet informative that is? This is the kind of analysis makes sense to me. He also talks about IBM and Semi’s. Terrific job Chris.
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
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