Tuesday, October 9, 2012

AAPL comeback

From down -2.29% to +.20% in the green today, the daily candle is shaping up for the volatility shakeout of the shorts mentioned earlier today. Yesterday's option position is looking much better, but still red, today's is 20% in the green.

 The daily candle thus far is a bullish hammer reversal candle and volume will be above yesterday's making this a high probability reversal spot.

The 60 min chart that shows most of the pattern, from negative at the head and leading negative coming off the head to a relative positive divergnece, this looks like the right area for a volatility shakeout of the shorts, some already probably hit today.

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