These charts, especially the 5/10 min ones, look very similar to what we saw in AAPL Friday, even the price action intraday as it rounded was similar.
As I said in the last post, it's pretty rare to go from extreme upside momentum to a next-day reversal, usually there's some lateral movement or a slowing of momentum as a divergence builds. Reversals are a process, not an event so there's no need to rush out and short GOOG, let it develop, let the probabilities build and if it stays on this trajectory it should make for a nice position that came to you.
Actually I see several stocks today that look even worse, I'd love to see a gap fill in AAPL and I think it can, but intraday trade wasn't good.
This is post QE3 trend 1 min, it definitely has fallen apart here, this 1 chart may not be very convincing alone, but....
The 2 min looks exactly right
As does the 5 min, remember migration so the shortest timeframe should be the sharpest.
Now the 5 min intraday with a positive divergence, not very big, but obviously enough. It looks like it didn't take long for distribution in to demand to start.
The 10 min is now below where the accumulation started. This is going to be an interesting chart to follow, we may have a trade here in a day or two.
No comments:
Post a Comment