Answering Pam's question

I got an email today from an old friend. Her question was this - between Apple and Disney, which one would you buy?

The answer is simple looking at the 2 stocks. I would be a BUYER of Apple and a SELLER of Disney.

Here's why...

Even though both are in down trends, Apple fell to 87 today before turning and finishing the day north of 94. Barring anything really weird on Friday, the stock will return to a column of Xs and will have held its ground at the double bottom on 86.

(Please note - I am LONG Apple stock and own the April 100 Call option)

Disney is another story.

Disney has a solid top quadruple top formation. Since not breaking out, it has made lower highs and lower lows. Plus the stock has just scored a triple bottom sell signal.

As for support, Disney's best support lies in the vicinity of 13-14.

There you have it - one for the BUY side and one for the SELL side.

RAC
The Intelligent Trader