AAPL Update

I just double checked, the June AAPL $540 Calls made 131%. I saw what I thought looked like a head fake setting up and a probable pullback, being time decay is a factor on the June Calls and they were at a nice profit, I closed them in hopes of opening the equivalent position in July Calls on a pullback in AAPL. So far everything has worked out as expected, here's the expectations and plan.

 AAPL Daily chart showing the large volume and star candle that are often reversal points, the next day a break above AAPL major resistance. At the white arrow is the next level of resistance and a break above that one that holds should cause heavier short covering, it looks like the move yesterday caused short covering. I suspected AAPL would pullback and gather some steam before moving decisively through that level.

 This is the intraday bull flag and where I closed the June Calls. Remember, head fakes/shakeouts/general manipulation are on all timeframes and in a closely watched stock like AAPL, they are even more prevalent; this explanation on an intraday timeframe has some importance for understanding the daily bear flag in the market, it's the concept of the head fake move. So we had a bullish consolidation/continuation pattern yesterday called a bull flag/pennant (the opposite of what we see on a larger scale in the market averages right now). Technical traders expect this formation to consolidate as it did in a triangle and then breakout to the upside and make a new leg higher, this is where the head fake concept comes in because Technical traders are so predictable and this is the reason I closed the long trade. As you can see, there was a Crazy Ivan shakeout of this pennant (just like the market0the mirror opposite), first a break to the downside and then a break to the upside. The upside head fake was the one I was counting on and expecting a move lower from there, so far that's exactly what we have.

Here's AAPL 2 min during the bull flag yesterday, note the confirmation on the move up and the leading negative divergence inside the pennant (again the mirror opposite of the market right now on a larger scale), this gave me a good idea there would be a head fake and pullback. Upon the head fake move to the upside there's another negative divergence in to that attempted breakout move which helps confirm its a head fake move and lower AAPL went.

There's a small positive divergence in AAPL now, I'm going to wait before opening July Calls for a stronger, more definitive divergence.

This is interesting though because it shows all of the same concepts of Wall Street manipulation based on the predictability of technical traders and this intraday situation in AAPL is almost the exact mirror opposite of the macro situation and moves in the market averages, you just have to understand the concepts and they are all based on how Technical traders react, their predictability makes Wall Street's response more predictable.