There is no doubt the sentiment of AAPL’s shareholder base is sour, but the future is probably bountiful as consumers will likely pick tons of AAPL products. Away from the fundamentals for a moment, AAPL’s technical picture seems compelling for a variety of reasons.

The stock has recently reclaimed its 50 and 100 DMA from the bears. The two averages are now moving horizontally, a positive change from the negative slope they had previously. Additionally, according to Ichimoku Cloud analysis, Span A is above Span B for 81% of the prognosticated future price action bias. There are only 5 more days of negative cloud (Span A under Span B). The stock has grinded 2.5% higher after fighting up and through the negative cloud and yesterday’s low was precisely at the turning line or Tenkan Sen…respecting the study.

salerno.mark.a@gmail.com

Paper bought 17,000 INTC Aug 25 Calls for $1.59 (2.2 times usual volume) with stock at $25.87
Paper bought 525 ANV Dec 7.5 Calls for $2.05 (15.3 times usual volume) with stock at $8.10
Paper bought 5,500 DVAX Jun 2 Calls for $0.60 (21.2 times usual volume) with stock at $2.49
Paper bought 1,680 KND Nov 15 Calls for $1.10 (19.5 times usual volume) with stock at $14.41
Paper bought 4,854 TWC Oct 115 Calls for $0.425 (4.4 times usual volume) with stock at $95.37

Paper bought 500 BXP Jul 105 Puts for $1.60 (6.9 times usual volume) with stock at $109.45
Paper bought 1,479 PAA Jul 52.5 Puts for $0.55 (2.4 times usual volume) with stock at $55.85
Paper bought 601 AMT Jun 75 Puts for $0.55 (3.4 times usual volume) with stock at $77.57
Paper bought 1,300 DPM Jul 45 Puts for $0.575 (14.1 times usual volume) with stock at $48.20

On the other hand, the RWX is an International Real Estate ETF.  The index is designed to measure the performance of publicly traded real estate securities in developed and emerging countries excluding the United States.

Of the 114 holdings in the ETF, 15% of the fund is invested in international regional malls. This is exactly the business that GGP is in, except domestically. While the location of these malls may seem important, statistically however, the market does not seem to care. One can infer this from the similar price action the two securities have had…as measured by the correlation coefficient.

In recent trade, the coefficient has backed off its near perfect levels. One may infer that managers have been dumping the ETF because of the 250%+ jump in volume from its average. These manages have been in the same yield search game that lead stocks like PG and CLX to all time highs. The RWX may be oversold because folks just like to play sectors now and not individual stocks…hence the spread displayed in the chart. The RWX may be oversold and GGP may still have room to fall…until the two cross paths again.

salerno.mark.a@gmail.com