Bartelloni: Parabolic Advances and Their Devastating Corrective Moves

We're privileged this weekend to have a killer chart sent to us by my good friend James Bartelloni. He is a U.S. Navy veteran and spent 12 years in the cockpit as a TOPGUN graduate in the F-14. Having graduated from the US Naval Academy with a BS in Mathematics, he later went on earn his Chartered Market Technician Designation. He sometimes uses a bit more of an unconventional approach to technical analysis and likes to call himself an ‘Intermarket Musician’.

From Bart:

"APPLE has made an amazing advance, however, the parabolic nature of this move should cause some concern.  This chart is a simple, yet powerful, way of seeing the natural corrections that tend to occur following these type of advances.  The NASDAQ ($COMPQ), Centex Homes ($CTX), Green Mountain Coffee ($GMCR) and APPLE ($AAPL) are shown." (Click Chart to Embiggen)

"Note the same nature of the patterns present and the swift and devastating corrective moves that ensue after such parabolic runs.  While it’s hard to even mention a corrective move in $APPL or an analyst “holding” or “downgrading” it, thus far Sir Isaac Newton has yet to be proven wrong.  What goes up will come down .... and the Apple won’t fall to far from the tree.  Caveat Emptor ...."

Hat Tip Bart

Tags: $COMPQ $AAPL $CTX $GMCR