As the global markets continue to experience turmoil amidst the ongoing COVID-19 pandemic, experts and traders alike are keeping a close eye on their investments and looking for new opportunities to maximize their returns. In recent weeks, two major developments have been making headlines: Apple’s triple top breakout and Mike’s short position on TLT coupled with his cash holdings.
First, let’s take a closer look at Apple’s triple top breakout. For those unfamiliar with the term, a triple top breakout occurs when a stock or index hits the same resistance level three times but ultimately breaks through and continues to rise. This type of breakout is seen as a bullish trend, indicating that investors are becoming increasingly confident and optimistic about the stock or index in question.
However, according to one coach, it appears that Apple might be on the verge of negating its triple top breakout. In other words, the stock could be poised for a downward trend, potentially indicating a bearish market sentiment.
This news comes as a surprise to many, as Apple has been performing extremely well in recent months. In fact, the tech giant’s stock price has risen over 100% in the past year alone, propelled by strong sales of its iPhone and overall strong financials. But despite all this success, it seems that the market may be shifting in a different direction.
So what does this mean for investors who have been banking on Apple’s success? Well, it’s important to remember that no investment is without risk. While Apple may have seemed like a sure thing, the market is always subject to change and no one can predict the future with absolute certainty.
In light of this news, some investors might be tempted to sell their Apple holdings and move their money elsewhere. However, this knee-jerk reaction could be a mistake. Instead, it’s wise to take a measured approach and consider all factors before making any major decisions.
This might include examining other indicators of Apple’s health, such as its market capitalization, earnings per share, and P/E ratio. Additionally, it’s important to consider any external factors that could be impacting the company, such as global economic conditions or changes in consumer behavior.
Ultimately, whether or not investors decide to hold onto their Apple holdings will depend on a range of individual factors, including their risk tolerance, investment goals, and overall confidence in the company’s future prospects.
On the other hand, Mike’s short position on TLT and his raised cash holdings indicate a more bearish outlook. TLT refers to the iShares 20+ Year Treasury Bond ETF, which tracks the performance of long-term U.S. government bonds.
Mike’s decision to short TLT means that he is betting that the price of these bonds will decrease, allowing him to profit from the difference. Additionally, his raised cash holdings suggest that he is looking for new opportunities to invest in a market that he believes is likely to trend downward.
Both of these moves are indicative of a bearish sentiment, or a belief that the market is headed for a period of decline. This could be due to a range of factors, including global economic uncertainty, political instability, or concerns over rising inflation.
As with Apple’s triple top breakout, it’s important to remember that investing always carries a degree of risk. While a bearish outlook might seem like the safer option, there is no guarantee that this strategy will lead to success.
Ultimately, the key to successful investing is to remain informed, stay up-to-date on market trends, and make decisions based on your individual circumstances and investment goals. Whether you’re bullish, bearish, or somewhere in-between, there are always opportunities to find value in the market – it’s all about finding the right approach for you.