AAPL Follow Up

I've had a number of emails about AAPL as it seems quite a few of you took the "Dead Cat Bounce" trade. As I stated on Friday in the AAPL update, I do not have a specific price target in mind, there aren't any significant areas that stand out as a likely target, except maybe the gap in the $570 area.

As mentioned in that post and this morning's, I'm more relying on the flow of funds, the 3C signals to give me an idea of when it might be time to take profits on a dead cat bounce trade.

The 1 min chart, as you will see (this is a great example of what I have talked about many time with this timeframe) has created a negative divergence, but because it held there it makes the probability of a consolidation pretty high rather than a true negative signal suggesting distribution or an end to the move, this is why migration of a divergence (either happening or not) is so important.

The Charts...

 As you can see the 1 min chart (intraday) did go negative soon after AAPL made it above break-even or Friday's close. This, without confirmation of similar divergences in the next longest timeframe, should be taken as a likely consolidation (lateral trade or a correction in price) either through price or time.

 The 2 min chart followed price, but it is not negative, in fact it is still in a leading positive area so there's no migration as of right now to the next longest timeframe, 2 mins.

 The 3 min chart looks good so far today and even has added to the leading positive.

As has the 5 min.

So in my opinion, AAPL's 1 min negative divergence cannot be called anything more than an intraday consolidation at this point.

Of course there are always other circumstances that warrant out attention in this analysis such as the state of the industry group, the market and the QQQ specifically as they can add some color or additional information, but that's where e seem to be so far, an intraday consolidation.

I'll keep watching this one as charts in these fast timeframes can shift quickly.