Apple (AAPL) introduced a new Apple TV and the new iPad, but the stock price barely budged. However there are several important internals of trading in Apple stock that astute investors should be in tune with.
The chart shows movement of Apple stock on prior event days.
Our computers show that ratio of up ticks to down ticks was 0.99. This is slightly negative. On most days, Apple exhibits ratio of upticks to downticks well above 1.00.
Ratio of up blocks to down blocks was 0.67. Block trades are an indication of institutional activity. This used to be a very important piece of information, but these days it should be taken with a grain of salt. These days most institutions use algorithms to break down blocks into smaller trades.
On its face, the foregoing data can be interpreted as institutions were net sellers and individual investors were net buyers.
Our proprietary algorithms that measure the actions of Smart Money show that the Smart Money was a net seller of $126.3 million of Apple stock. This is only the third day in 2012 that Smart Money has been a net seller of Apple stock.
Market observers have long been attempting to measure the internals of trading. Market technicians have developed hundreds of methods over years to this end. The most famous such indicator is Joe Granville’s On Balance Volume (OBV). OBV was originally named Cumulative Volume by Woods and Vignolia. In 1946, Granville rechristened it with the name OBV...Read more at Forbes
