DeMark in less than five minutes broke the Apple curse. It's the curse where anything they do is bad (including increasing revenues and earnings). How do I know DeMark broke the curse? Because I had a front row ticket. I will describe the Apple exorcism performed in a moment, but allow me to describe the setup first for context.
I started writing Stealing Apples While Others Panic early Tuesday. Apple completed a TDCombo 12 on Monday, and if Apple continued lower on Tuesday, the chart would indicate a 13 at the close.
Apple's price action generating a TD13 laid the foundation for me to write two Apple articles. One for Real Money Pro titled Panic Selling in Apple Opens the Door with exact entries and exits, and the previously mentioned article.As I wrote the first article, CNBC announced Tom DeMark was making an appearance to talk about Apple. Keep in mind I have 14 monitors around me, and one displaying several Apple time period charts. The TD13 market timing indication is staring right at me. Imagine having a five minute advanced notice that the top market timer in the world is about to go live on CNBC and declare Apple is now a buy. That is how I felt on Tuesday late afternoon. Obviously Apple is going to increase in price, so it's only a matter of how big of a position I want or can place as DeMark goes live. After a moment to reflect the best course of action, I do the unthinkable. I decide not to push the order submit button, and instead I watch DeMark while simultaneously observing Apple charts. I decide I want to know what to expect for future events. Why can't I do both? I can, but maybe not as well. If you study behavior finance as much as I, you understand that once an investor is in a position, chemical reactions occur in the brain that can't be felt and may create unwanted biases. It's the reason why I use a very mechanical approach to trading and investing. I try to map out my entry and exits (one for profit and one for a stop loss) before I enter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV