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Grab Yourself a Little Yahoo!

Gary B. Smith

I received a few questions on the Apple Computer(AAPL Quote - Cramer on AAPL - Stock Picks) chart from Wednesday where I noted the pattern was bearish.

The obvious question was "why?"

Let's revisit the chart and take a closer look at what defines a bearish wedge.

First, let's go to Technical Analysis of Stock Trends, where they call my "bearish" wedge a "rising" wedge.

In a Rising Wedge ... there is a gradual petering out of investment interest. Prices advance, but each new up wave is feebler than the last. Finally, demand fails entirely and the trend reverses. Thus, a Rising Wedge typifies a situation which is growing progressively weaker in a technical sense.

Honestly, I don't know if that description is accurate.

But it doesn't matter: experience shows me that when I see a pattern like Apple's, I get worried if I'm long.

Therefore, a stop below the uptrend line -- which is always prudent anyway -- is particularly important at this juncture.

And that is the final word from Reagan National, where people always paint retirement as a time to travel. Now, assuming there is such a thing as "retirement" anymore, I have to admit my interest in traveling is about zilch. Is there anyone who can still put up with all the hassle involved?

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Today, the Nasdaq, T2108, Johnson & Johnson(JNJ Quote - Cramer on JNJ - Stock Picks), Goldman Sachs(GS Quote - Cramer on GS - Stock Picks), Yahoo!(YHOO Quote - Cramer on YHOO - Stock Picks) and the Philadelphia Housing Sector Index (HGX).

Charts produced by TC2000, which is a registered trademark of Worden Brothers Inc.