Something that impressed us this week was the strength in Apple (AAPL) on a day when the markets were getting punished. That sort of relative strength goes a long way for a stock starting to demonstrate bullish momentum, higher volume and a MACD (moving average convergence divergence) buy signal.
All of those qualities are present with Apple, but the stock is not breaking out yet. Tuesday did see Apple touch a new all-time high but it has since backed away from that.
Perhaps we are just a bit too eager for the bullishness to exert itself, but Apple's chart is certainly ready for primetime. The company will report earnings later in the month as investors await some positive sales news about the new iPhone and other gadgets in front of the holiday season.
One chink in the armor of this nice chart has to be money flow, which has turned down. That may be considered a negative situation, but let's understand Apple is the most widely held name (yes, even more than Nvidia (NVDA) ) in the universe. Many funds already have enough of the stock and with Apple near all-time highs, why buy more here?
We rate Apple a Two in TheStreet Pro Portfolio.
At the time of publication, TheStreet Pro Portfolio was long AAPL and NVDA.