AAPL Follow Up

OK, I'm definitely bearish on AAPL, I mentioned it yesterday, but I do want to show you something. You may recall that I said "watch the leaders... AAPL, GOOG, etc"

I posted this chart of AAPL at 3:45 yesterday

I said,


"Despite even the late day positive 1 min divergence, the position of 3C at that point is very negative. Look at the red arrow on the top chart, the distribution taking place while it ran for the highs of the day!"


I also said, 


" I would hold this through even a bounce above the triangle-I'd add there too, but just to illustrate the amount of trouble this stock appears to be in-and it's a market leader."


In the white box (Tuesday) we see an end of day positive divergence, but it too was pretty low comparatively. I guess the point I'm getting at is I think AAPL is a decent short, but at the end of the day we do see the market maker stocking up on AAPL, that's what a 1 minute positive divergence basically represents. So, considering AAPL is a market leader, looking back we have to ask ourselves, "Why was the market maker buying this stock for his/her inventory at the end of the day?" The answer would seem pretty obvious; their expecting to sell those shares at higher prices in the near future.


Just so you know.. the divergence on the 1 minute chart of AAPL today was negative, however above we see two days in which the market maker was stocking up at the end of the day and both times AAPL moved higher. These are the hundreds of little pieces of the puzzle that helps us put together a composite picture of what we can expect to be the highest probability. Another little lesson to throw into the experience file.