Cycle Trading

Apple is one of the market leaders.

Over the past 4 years, Apple underwent a parabolic rise.

After a parabolic rise, Apple has now fallen 45%

So Apple just announced a $50 billion increase in its buyback program and raised its dividend by 15%.
So all should be good in Apple-world.
What piqued my curiosity this weekend was the HUGE S.O.S. printed on Friday.
Apple printed 1733.55 for S.O.S. That’s 1 billion 7 hundred thirty three million.
That’s HUGE!

For those of you that have followed my blog for anything length of time can attest that I do not usually (ever) comment on Apple. But because of the HUGE S.O.S. I was compelled to take a closer look.

So the first question I had was did Apple print a S.O.S. number like this prior to its fall from grace?

The 26 trading days leading up to its all time high, Apple printed 7 S.O.S. days totaling 1214.04.
Notice the big 480 million just two days prior to the top.

This is the 5th contra-trend rally since the September peak. Each of the prior contra-trend rallies also printed a number of S.O.S. days. In the chart above I cumulated the totals for each shaded area.

I believe that the above chart clearly suggest to be on the look out for more down-side surprises …