Monday, August 13, 2012

Important AAPL Update-and possibly GREAT Trade

AAPL is giving up more information, I mentioned that we "could" just see a move down from the bullish triangle forming today, that I think is NOT going to happen and the head fake breakout to the upside is, that is still where I think AAPL is the BEST short and I would feel comfortable using puts which I only use when I feel comfortable with the timing. AAPL looks very much like a trade that is setting up to come right to us. The market signals almost confirm what we see in AAPL perfectly, this market is a lot more connected than you'd think.

Take a look.


 The original triangle which is actually a bull pennant, I believe there's been distribution in to the bullish price pattern, but volume is dropping off so much there isn't much more they can distribute without creating more demand.

 Here's the pennant just getting bigger, which makes it more effective as a head fake/reversal pattern.

 The Bollinger Bands are still wide, but starting to pinch so maybe this triangle gets a little bigger.

 Look at the positive leading divergence on the 1 min chart, BUT ONLY the 1 min!

 The strength didn't migrate to the 2 min, so it is fast accumulation by market makers, but not all that strong, perfect for a head fake breakout.

 The 5 min chart shows the distribution inside the bullish pattern, but volume is running dry, the head fake move will have to come to bring in demand to sell in to.

The 15 min chart on this move-leading negative.


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