Tuesday, October 19, 2010

Seeking Alpha PatternDNA: (Apple) AAPL

Apple's rapid afterhours fall from Grace despite the Numbers highlighted the vulnerability of believing the hype.

The Zignals Seeking Alpha PatternDNA read of Apple's projected price action at the market close (before the release of earnings) was far from encouraging.

Looking at a summary performance for the 5-day Trading Pattern (available in the free version of the software) with the Default Targets&Stop settings; 15% Target, 10% Stop + Trail 10% Target, 5% Stop and 25% Profit Target there is clear downward pressure, even using a 'Neutral' Match setting.

What is clear, in the 'Strong' and 'Strongest' Match, the Pattern lead to an initial loss of 10% before a 15% gain. Lowering the initial Target from 15% to 5% (requires Premium version) failed to change the performance of the Pattern at 'Neutral' settings or higher. So it's clear the weak performance of the Pattern was not because of an ambitious initial Target price.

PatternDNA offers another take on potential price moves going forward, and can be especially useful when price-moving unknowns, like upcoming earnings, lie in wait. You can quickly get a summary view of this information from the widget while viewing the stock-home page in Seeking Alpha.

PatternDNA is one of the fastest adopting Apps in the SeekingAlpha App store with 466 current users - why not get yours today!

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