The Chart du Jour

Apple: Head & Shoulders Top?

Aug 17,2000

By, Barclay T. Leib

Every afternoon we scroll through over 200 different charts looking for interesting patterns to comment on. Sometimes we find a Fibonacci rhythm that looks compelling (our recent prognostications on Lucent); other times, an Elliott Wave pattern that is complete. Occasionally, we'll see an interesting "coil" pattern, and once in a while, a classic Edwards & Magee chart pattern on a given stock.

For those who have not heard of Edwards & Magee, they wrote perhaps the definitive text on classic technical analysis -- and how and why it works -- way back in the 1940's. The book is now in its 7th reprint and despite the dated examples, is an easy-reading treatise valuable even today.

It is with Edwards and Magee firmly in mind that we turn to today's Chart du Jour: Apple Computer. We ask one simple question: Is that a huge Head and Shoulders top (with small double shoulders, the last just about to form) that we spy?


Chart created using GET End-of-Day

If it is, the implication is that while Apple has rallied from $5 to above $70, it may easily revisit the $5 region yet again. With the 200-day moving average now above the current price, that moving average should act as resistance for a potential final thrust up. After that, we'd keep a close watch how this pattern further develops. The June break of the January lows is a very negative portent.

Please support Sand Spring Advisors and purchase one of our more in-depth articles below.


How Your Articles Are Delivered
Upon the processing of your credit card or the receipt of a personal check, Sand Spring will e-mail you the articles requested as a Word attachment, and also provide you with a WWW address and password to view the article on the web without using Word should you so desire. Confirmation of your order will be immediate, and the actual article will follow by e-mail typically within a few hours and in all cases before the opening of NYSE trading on the following day.>

Ordering by Credit Card:
Our shopping cart is designed for both physical and subscription products, so do not be confused too much when it asks you for a shipping address. A correct address is important only for credit card authorization purposes. Your e-mail information is the most important piece of information to us for proper delivery of your article(s).

Disclosure Statement

Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.


If you order by credit card, your credit card will be billed as "Sand Spring Advisors LLC"

Should you have any ordering problems, please contact us at
973-829-1962 or by email at the address below:

information@Sandspring.com


Take me back to the Sand Spring Home Page


Comments or Problems


Thank you for visiting Sand Spring Advisors LLC, Inc. We hope to hear from you again soon. For more information on Sand Spring Advisors actual programs, services, or to request a copy of a Disclosure Document, please phone us at 973 829 1962, FAX your request to 973 829 1962, or e-mail us at
information@Sandspring.com

Corporate Office:
10 Jenks Road,
Morristown, NJ 07960
Phone: 973 829 1962
Facsimile: 973 829 1962

Best Experienced with
Microsoft Internet Explorer
Click here to start.

The material located on this website is also the copyrighted work of Sand Spring Advisors LLC. No party may copy, distribute or prepare derivative works based on this material in any manner without the expressed permission of Sand Spring Advisors LLC

This page and all contents are Copyright 2000 by Sand Spring Advisors, LLC, Morristown, NJ