Into a market peak and during the subsequent decline, astute traders are looking for clues. There are always stocks, or industries or even sectors that lead and others that typically lag.
Which ones are safe haven plays? Which ones are diversified and which ones are more insulated from global pressures?
Technical analysts do things like this too -- like finding which stocks are showing us superior relative strength. Or, looking for ones that have broken the 195-day moving average line? (Yes, trying be be one week smarter than waiting for the 200-day moving average.) You get the picture, I am sure. I consider Apple (AAPL) a leadership company and stock and I would assume many other market watchers do, too. Let's look at a couple charts of AAPL to we what we can glean.
In this daily Japanese candlestick chart of AAPL, below, we can see that prices gapped lower Monday. Prices have improved from their weakest point and are actually above the open. We do not know how prices will close, but this is the information we have to work with for now. Trading volume is not particularly heavy, but again we have more time until the closing bell. The On-Balance-Volume (OBV) line has been weakening since late January and the 12-day price momentum study shows weakness in February vs. January.
