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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj


Saturday 27 February 2010

Apple/Baidu



I noticed a few days ago how similar these 2 charts were.Baidu had a battle around 400 which eventually resulted in a massive breakout,while Apple is struggling with the 200 level.I dont believe a similar breakout is likely but we need to keep an open mind.The bullish weekly engulf is a warning to the bears,but I suspect the bearish 3 black crows pattern and the fact that the last 4 weeks were all inside weeks,contained within the extremes of the 3rd black crow, will prove too much of a headwind.6th March is a 1 year anniversry of the low for this move so a high this week would likely be significant.For those more bullish this week's low is an obvious stop-loss fo rlong positions.I believe Apple rallied on talk of a possible stock-split,which would enhance liquidity by attracting small investors.

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