Since AAPL chart study generated much interest on this blog and on Twitter, let us see how the charts explain the relative flatness of AAPL price despite recent up days for the market. 

Markets have soared today. That gives us a chance to look at a few charts of NASDAQ Composite for some quick analysis.
First consider the the intraday charts for the composite (COMP) at close yesterday (7/21) below.
Notice the crossing point indicated in the bottom right chart.
We have already seen the importance of crossing points in a previous blog here: http://orthochronos.posterous.com/crossing-point-of-indicators.
With the dominant daily residue (gray) and Red moving upwards, the upside open today was not much of  a surprise. In our definition, "dominance" is a combination of magnitude and correlation. Of course, this being the earnings season all the movements tend to be amplified!

Now consider the COMP chart at open today. As we saw in the AAPL charts yesterday (http://orthochronos.posterous.com/aapl-for-the-day), the impact of price movement at open reflects first on the fastest oscillators.

However, the transfer of momentum to the Mid Pink Oscillator and the Slower Oscillators is very interesting and in contrast to what happened in the case of AAPL.
We can see that the initial upward motion of fastest oscillators is reflected in the Pink, Red and Blue as we reach noon today (7/22). Notice also how the daily residue (gray) in the bottom right has moved.

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Before getting to the earnings related chart study of Apple (AAPL), take a look at the end-of-day chart from yesterday (7/20) for NASDAQ Composite below. The downward crossing point of the dominant Pink and Black is clearly seen. The fast oscillators however have some upside, but that is clearly not going to receive any support from the slower oscillators. So today, as expected, we had a nice pop up at open followed by a slide. Remember that price is the sum of all the oscillators and indicators. Thus more in agreement they are, lower the risk of the trade and greater the price change. Our counter intuitive "low risk, high reward" system!
 

AAPL Earnings

AAPL announced earnings after close yesterday (7/19). Whenever such a fundamental company event happens, it is not safe to depend completely on technical indicators. That is why we suggest staying away from particular stocks during the couple of days around their announcements, so that the oscillators get a chance to settle back into rhythm after possible upheaval in price. Nevertheless it is educational to look at the charts around earnings time.
Check out the end-of-day chart of AAPL yesterday at close before the announcement. The dominant oscillators are turning upwards and the fast oscillators have very low magnitude comparatively.

After the earnings announcement yesterday, it was clear that the stock would pop this morning. The upward jolt in the price is captured by the fastest intraday oscillators in the intraday chart below from the open today (7/21).

We can see that some of the momentum in the price has also transferred to the Pink and Black oscillators. However, the oscillators have settled down by 10:30 as the chart below shows.

And by the afternoon, it is clear that the impact of the earnings was captured by the fast oscillators and distributed somewhat to the Pink and Black oscillators, but soon enough all of them were steadily moving along their consistent paths! The chart below is from 3:30pm as indicated.

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