by Gavin M.
The above chart shows that only one stock, one wonderfully perfect mega awesome stock runs the entire US market - AAPL. Technology has overcome finance as the biggest sector by weight in the SPX. Apple is its largest constituent by individual weight as well. So there is no doubt each time I go on Twitter and tell the wonderful people who follow me to trade the trend by using AAPL stock chart, they will have a better chance at winning.
Look at the chart. That is a 15-minute chart. It is incredible how SPX just tracks AAPL almost at 100% correlation. So if you are some crazy hedge fund out there with a nefarious plan, all you need to do is issue some bs press release or rumor on Apple and you get yourself the move you need.
There is no doubt the biggest pumper and Apple pom-pom boy Carl Icahn keeps tweeting about this stock because he knows that a rising tide lifts all boats. He pumps Apple and gets it to go higher, in turn the overall markets will see it as positive and rise with it. Correlation algos always have a field day when Apple gets the party started.
I am not being bitter about all of this. In fact, I trade Apple almost daily. It's very liquid, it's quick and it's fun to trade. Those who have little to no experience in trading get killed right away trading Apple. Apple is a stock that fools you into thinking it is an easy trade with cheaper options. It is a stock that requires a lot of experience and discipline. If you jump into Apple thinking it will behave like any other stock out there, things could get quite messy.
I have no preconceived notions for where Apple could go. But it is always epic when they pop it so high for a few days and then dump all of those gains in one hour. The drop itself is worth the many days of waiting.
In any case, if you ever need any clear proof that Apple rules the market or better yet, APPLE IS THE MARKET, you only need to stare at the chart above.
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Traders from Equity Sense will be writing on this blog on positions and other market-related things.