I still have a pretty high threshold for speculative leveraged positions like AAPL Calls, but I do like what I'm seeing intraday on the break below support.
AAPL is leading here and in a pretty short amount of time. A reversal in AAPL would not look the same as a reversal in MCP as just covered for this simple reason...
Accumulation or distribution is a process, no institution wants to show their hand so they don't go out buying like many traders believe when they see large volume spikes and big moves in price, smart money was in long before that happened; the last thing they want to do is invite the HFT's that ping for their orders "Icebergs" and front run them. However the process of accumulation or distribution can easily be masked in a break below an obvious support level such as the one in AAPL, someone has to take the other side of the trade and by law if the order is at market and there's no match, the market maker has to take it, but this also allows smart money to accumulate a large position without raising suspicions as the fact that someone has to take the other side of the trade is just a fact.
When we see an intraday leading positive like the one above, the probabilities are high that the flood of shares that were sold when the stops were hit, were accumulated, it would be perfect for the shakeout move we are looking for in AAPL AFTER OP-EX as pointed out yesterday.
I'm not quite there with the signals to enter the call position, I need more and stronger evidence, but this is a good start on something that we (myself and several other members) were thinking might happen any way.
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