Profit Extraction -Making Both Sides Happy

AAPL Margin Cuts Both Ways

Enlarge these charts, this is a comparison of perspectives both bull and bear and how to get the most out of a profit swing

• September to November 
• 17.99%
• December of 2017
• 6.19%
• January of 2018 
• 6.19%
• February to March of 2018 
• 21.82%
• April of 2018 
• 8.9%
• April of 2018
• 10.68%

Most of the energy behind a price movement is obviously earnings but from the conventions of technical analysis we would use the location of price above or below the moving average (in this case the 50 simple) so what is most clear on this chart is that when price pulled back for a period of 7-10 down trading days it would normally snap back up by the amount of 6.19% to as high as 21.82!

These kinds of returns would not be achievable with the broader market averages

Making Profits on the Downswings

• November to December 
• 5.12%
• December to January
• 4.55% 
• January 18th to Febuary 9th
• 16.75%
• March 13th to April 2nd
• 10.24%
• April 17th to 4/27
• 10.36%

Range-bound conditions make it more favorable to sell the relative tops and buy the relative bottoms.  Although 16.75% is a bigger swing in percentage terms the math overall slightly stacks the deck in favor of the bulls.

The fact is the expression price takes the stairs up and the elevator down is still true in the sense that the rate of momentum should be that shares were declining 2x as fast.  What has happened over this past year is that the buying pressure from institutions is the reason for the stalemate and why price is stuck in between both directions.  It is only about $4 higher than its moving average at $172.74, so it is taking its time deliberating what to do next even with the support of Berkshire Hathaway and the collective force of buyers who dictate price.