Apple (AAPL) and Google (GOOGL) flash ‘pure weakness’ | decision point

We’re starting to talk more about the Price Momentum Oscillator (PMO), which is about finding “pure strength” and “pure weakness.” It’s about the zero line and the actions above or below the PMO.

We’ve frequently reviewed the Magnificent 7 chart and noticed that both Apple (AAPL) and Google (GOOGL) are showing “pure weakness” when it comes to PMO.

“Pure weakness” is defined as PMO dropping below the zero line or moving sideways. The distance the PMO is from the zero line determines the truth of the condition.

Looking at AAPL, there was a period of ‘pure power’ in November. PMO was moving above the signal line and rising strongly. When it peaks and begins to fall above the zero line, it is a sign of decreasing intensity. The pure weakness established when the PMO falls below the 0 line is now in effect. If we had followed the signals, we could have saved quite a bit of the downside.

The rest of the chart also looks pretty terrible with negative RSI and stochastics below 20. Additionally, overall relative strength is falling.

We see a similar setup in GOOGL, but this time the signal is arriving now with the PMO dropping below the zero line. This doesn’t mean a sharp decline is expected, but it does mean at least tightening the suspension.

There are signs that GOOGL could see further declines in the future. RSI is negative and Stochastics are below 20. Additionally, overall relative strength is falling.

conclusion: PMO can be used to determine the strength or weakness of a particular movement based on its position and direction around the zero line. When you look at the PMO, both Apple and Google are showing pure weakness. If you like this style of analysis, please visit us for yourself. DecisionPoint Diamond A report that provides 10 stock/ETF picks each week with discussion on PMO and other factors such as those listed above. Use coupon code DPTRIAL2 to try diamonds for free for two weeks!

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