NASDAQ 100 Big Cap Tech To Outperform

Mega cap tech stocks have lagged the broad NASDAQ and the S&P 500 for many months.  Recent market action suggests that this could be changing.  Apple makes up 12% of the NASDAQ 100 Index alone.  A new uptrend for the world's largest technology company by market cap would pull the NASDAQ 100 Index into the lead. It's also worth noting that other tech giants like MSFT, CSCO, INTC, AMZN and GOOG also have bullish charts.  Follow the QQQ.

Has Apple Begun A New Leg Up?

Carl Ican's announcement today may have been the reason Apple was up almost 5% today, but it wasn't the only reason.  Apple has been undergoing accumulation for months as it built a base similar to 2008-09.  Today was merely the breakout.  If its chart follows a similar path set in 2009, Apple could pass $1000 quite easily.  With a P/E < 10, it is one of the most undervalued technology companies in the NASDAQ 100.

Apple Price Chart Showing Positive Developments

Something's going on with Apple.  On recent days when the market has been down or flat, Apple has undergone accumulation.  It is about to complete a well formed multi-month base similar to the one formed in 2009.  Apple's weekly chart is exhibiting bullish positive price/momentum divergence in addition to early outperformance when compared to the S&P 500.  The P&F chart is also showing a positive trend change.  It will likely find resistance at its 200-day moving average (~$462).  If it can break out from here, that would be extremely bullish.

I can't speak for new products in Apple's pipeline or how it may "change the world" again.  However, I can say that there have been recent notable bullish developments in its chart.

(Weekly price chart and P&F chart courtesy of stockcharts.com.  Visit stockcharts.com for more great charts.)

Is Apple Preparing For Another Leg Up?

Apple is up in the premarket today after reporting earnings that we're not quite as bad as analysts had suggested after many downward revisions.  The market has responded modestly and it should open up ~5% today.  Whether or not it holds is another story and is largely dependent on the broad market.  Regardless, the market has more or less written Apple off completely.  With almost $400B in market cap, a P/E of 10 and a dividend yield of 2.8%, the market is pricing it like a utility company not a tech company.  Over the past several months, it has formed a base pattern similar to that in 2009.  Maybe I'm just seeing things...