Forget The Story, Watch Prices
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.
Source:
$IBM $SMH $SOX $AAPL