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From Train - To Drain

By: Erik Swarts | Thursday, January 24, 2013

We continue to view Apple as a stock largely dissociated from both fundamentals and technicals - and primarily trading under the Universal Law of Gravitation. And although Apple's mass is diminishing by the week - the backside of the great momentum train that was Apple has become the great momentum drain.

Despite the inevitable retracement - we still feel it will continue to bounce down. The massive 2008 momentum breakdown in oil has provided a prescient roadmap to date.

Apple 2011-2013 versus Oil 2007-2009 Weekly Chart

Apple 2013 versus Oil 2008 Hourly Chart

Oil 2008 Hourly Chart

Apple 2013 Hourly Chart

 

Author: Erik Swarts

Erik Swarts
Market Anthropology

Although I am an active trader, I have always taken a broad perspective when approaching the markets. I respect the Big Picture and attempt to place each piece of information within its appropriate context and timeframe. I have found that without this approach, there is very little understanding of ones expectations in the market and an endless potential for risk.

I am not a stock picker - but trade the broader market itself in varying timeframes. I want to know which way the prevailing wind is blowing, where the doldrums can be expected and where the shoals will likely rise. I will not claim to know which vessel is the fastest or most comfortable for passage - but I can read the charts and know the risks.

I am not a salesperson for the market and its many wares. I observe it, contextualize its moving parts - both visible and discrete - and interpret.

I practice Market Anthropology - Welcome to my notes.

Erik Swarts is not a registered investment advisor. Under no circumstances should any content be used or interpreted as a recommendation for any investment, trade or approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes only. All opinions expressed by Mr. Swarts are subject to change without notice, and the reader should always obtain current information and perform their own due diligence before making any investment or trading decision.

Copyright © 2011-2014 Erik Swarts