I see a perfect storm for the bears gathering on the horizon. The worst January on record is likely to result in one of the best months of March.

As I noted yesterday, this rally won’t stop until everyone stops labeling it a “bear market rally.” Meanwhile, quietly, almost unnoticed I’m sure, certain bellwether stocks are positioning themselves for a significant rally.

Apple, which was among the weakest of the tech leaders in Q4, has now formed a nice saucer-like bottom over a period of two months. It’s not dead, it’s dormant. All that’s missing is the catalyst to launch a breakout. The chart accompanying this article indicates three upside targets for AAPL. And as Apple goes, so goes the Nasdaq and that means animal spirits will be unleashed across the board.  

The interesting thing about the Volume Profile chart of Apple, which has a look back of 2 years, is that the stock is basing at its Volume Profile Point of Control. This is a very bullish technical development because it creates a volume floor, as it were. A springy base of support.  

Moreover, there is very little volume resistance immediately overhead. And remember, the catalyst for an Apple breakout could be ‘good’ news or ‘bad’ news. In other words, it’s just as likely for AAPL to rally on a weak jobs number as on a strong one.

While there is nothing certain in regard to the market, if we get a rally, don’t fade it; instead find ways to participate.

www.daytradingpsychology.com (Coaching for private traders.)

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and banks.)

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