We have provided Minyanville readers with every move our algorithm has made in Apple
(NASDAQ:AAPL), which resulted in three trades for 2012 equaling 47%. (See Citigroup Downgrades Apple, but Does It Matter?
for our most recent discussion.)
We've told readers that the only way we would get long the name is if we saw an upgrade from Strong Sell to either a Hold or a Buy, or got an Oversold level reading on our proprietary countertrend measure. Yesterday at the close, we got this Oversold alert. Our Buy / Sell rating indicates strength, whereas the countertrend indicator measures the velocity of the deviation of the move to either the upside or downside applied with percentage statistics. For those of you using RSI for Oversold indicators, you should know that it is full of false moves.
The stock is now up nicely and seems like a late call; however, the stock is still Oversold. For those who want more certainty, wait for a 3 or a 4 rating to get long. (To learn more about ChartLabPro's algorithm and rating system, visit www.chartlabpro.com
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No positions in stocks mentioned.
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