Tuesday, May 6, 2014

Nasdaq warning

Is that a clear head and shoulder pattern on the Nasdaq ?
When stocks like Apple and Tesla push higher in the month of May, I usually have
serious doubts.
Anyway, just keep this chart on your mind, and prepare for "fake higher moves", followed by sudden reversals.
Low PE on Apple could be a bullish sign (mentioned a few weeks ago that Apple was a clear value stock), but this pattern shows a highly probable "pull back".

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