Our last two indexes, the XCI, the Computer Index, and the XOI, Oil and Gas Index, are both showing a paucity of pulse. The XCI’s decline began last October, when Apple Computer started to come down. It is quite likely it will continue until Apple really bottoms and begins rising. But many computer companies have come down, based on weaker sales in a weakening global marketplace: IBM has tanked; DELL is getting ready to tank (after a buyout offer fell through); EMC is in a long decline; HPQ is attempting to resist the coming decline; QCOM is beginning its descent.
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XOI looks ready for another leg of decline. It is overbought; overbought on no pulse. And CGTS looks to be heading lower.
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Here’s a few bonus charts for those who made it through the entire report: Apple Computer; and some Chinese banks we’ve been following. When will Apple bottom? Nobody knows. It is going lower, based on its lack of pulse. It is overbought in terms of M2F ALT (brown line, central pane). It has not bottomed. And there is a chance it could go as low as 366 or even 360 before testing support there.
At least Apple has shown a pulse during its most recent rallies in attempts to bottom.
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