Evidence-Based Investing
Apple could be tracing a fourth wave triangle. The heavyweight is likely to resolve to the upside during the next few weeks. It needs a sustained break above 122 after the 109-112 S/R cluster holds. Low liquidity and a January corona stimulus package narrative during the Christmas season could trigger the breakout.
There is not much more rally potential from squeezing the shorts. Bears capitulated as the S&P 500 short interest continues to fall. The Goldman Sachs gauge reveals that short positioning in US blue-chips is the lowest in more than 17 years. Extreme sentiment/postions are associated with subsequently surprising asset returns to the opposite direction of …