The Prophetic Power of SwamiPredict

Two days ago I blogged about a possible reversal in Apple (AAPL).  You can read the post here.  Today, fueled by economic concerns, the market has dropped over 2 percent taking Apple’s stock with it.  At press time Apple is down $10.  As such, I wanted to take this opportunity to again go over the exit signal detected by SwamiCharts.  Also, I’ll be adding some excerpts from an interview with a former Apple executive on why their reign could soon come to an end.  The full article can be found here.

To recap, SwamiPredict is a momentum oscillator that measures the speed and change of price movements using advanced digital signal processing (DSP) filtering techniques.

As such, this indicator gives you an early view of the change of price movements by varying the calculation period over a range of periods and displaying price movement to the upside in green and price movement to the downside in red. As a result you see both the early stages of a price movement for the shorter periods and a measure of the persistence of the movement for longer periods toward the top of the chart.

So by analyzing the chart below (data taken yesterday) you can easily see that SwamiPredict detected a sell signal on the 2nd of August.  And although the traditional stochastic oscillator also gave a sell signal before today’s massive drop the indicator was whipsawing enough to also make exit signals on the 11th and 20th of July.

Finally, Minyanville reported some fundamental concerns that Apple’s former director of strategy and marketing (Trip Hawkins) has about Apple’s future.

Trip explains that “Digital Chocolate’s games will always be in the App Store. But I think it would be an incredibly positive thing for the industry if Apple decided to support all of the web standards, because then Apple could be the best about everything. Right now they make a conscious choice. They want you to be in the App Store rather than the browser, so they cripple the browser. They’ve created this outlet and they had to have an excuse to keep you there, so they’re like, ‘Oh it’s nothing against Flash; we just prefer HTML5’. Well, Flash can actually make a really good game, and with HTML5 you can’t do that. But give HTML5 another few years to mature, and that could solve the problem. Or Apple could be more generous about deciding to support more de facto standards like Flash, or at least let it run its course.”

Adding, “[If] you want to be more successful, you have to be on more platforms, and you have to take a more open, democratic cross-platform stance.”

Advertisements
This entry was posted in Company Watch, Evaluating Strategies and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

One Response to The Prophetic Power of SwamiPredict

  1. Pingback: How to Use Swami Volatility | Stockwatchpro

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s