CNBC Abigail Doolittle on the next dive..

Discussion in 'Stock picks and trading strategies' started by txjeff, Feb 29, 2012.

  1. txjeff

    txjeff Member

    For what it's worth. You decide. Transcript:

    this week, the s&p at these levels is now at pre-crash levels. we're wondering if you missed the rally, is it too late to get in right now. joining us to talk numbers on all this, abigail doolittle, founder of peak research. you know, you talk about whether or not we're going to see this continue here. you want to look at the chart of the s&p itself and whether this rally can continue. yesterday's close was very impressive. when we look at the chart of the s&p -- there's a lot going on here. what do we have here. the s&p is pitting up against long-term resistance. the vix is held by long-term support. something's going to give. it's probably going to be a rising wedge in the s&p, as the vix spikes higher, target of about 50. it looks like the s&p is going to pull back. obviously the vix and s&p have gone in opposite directions. they were counter to each other. lows now on the vix as the s&p has gone higher. you think that's going to reverse? yes. the s&p will likely pull back as volatility spikes up in the next three to the s&p will likely pull back as volatility spikes up in the next three to probably nine months. your support on the s&p at that point would be -- right around 1075. that's the target we would be looking at initially. to which we would say, yikes, right? 20% decline, true collection. apple has just defied gravity forever now. where do you see it going now? apple's run has been impressive. much of it, however, has been on a bearish island reversal. or a potential for a bearish island reversal. that's a flee-floating island there. it's likely to reverse back down. it's supported by a gap right there at 577. target 420. apple looks bearish, and it supports a likely decline in the s&p and spike in volatility on the vix. you would take profits in apple here? i would look to take profits in apple. it's hard to judge when this would take place, but maybe in the next three months. perhaps next week. you know it's not going to end well. just like that. big drop. thank you. abigail doolittle, talking numbers here.

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