For the first time since Apple (AAPL) peaked in September of 2012 we’ve got a buy signal generated from quantified tweets. Over the last few years there has been a lot of chasing in the stock which showed up with our indicator simply mirroring price. As a result, it didn’t generate any trade signals. Now that the stock has calmed down smoothed sentiment has painted a positive divergence with price that is more than three weeks old. It confirmed the last dip to the 50 day moving average and has also broken above the trend line that was confirming that dip. The bulls have overwhelmed the bears near support which generates the buy signal.
Here’s a post with the details of how we use our Twitter and StockTwits indicators to trade stocks.
Just for fun, here’s the full chart of AAPL.