Thursday, April 5, 2012

AAPL Update

AAPL looks to me to be one of the least bullish stocks for a bounce, thus the reason I left the puts open yesterday and even said, "I wouldn't be surprised if AAPL underperforms the market".

Here's why...

 AAPL broke above resistance, this has the look and feel of the same kind of head fake move AMZN is experiencing. A move below $620 should start a flush in AAPL.

 AAPL has some 1 min positive divergence, but that is it.

 The 2 min chart is leading negative

And the 5 min chart is much worse, along with the longer charts.

For now, I'm leaving the puts open and on a move down, may close then in favor of a longer dated expiration. There's not much of a gap in AAPL, it should be able to fill that, that may be an area to consider AAPL short if you are interested in the trade, a stop can be placed just above the recent highs.

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