AAPL Update

Other than the initial AAPL Jan. 525 Call trade idea, I didn't get to add any calls Friday which was a late day thought put out.

AAPL has got to be torn, on one hand hedge funds are trying hard to get out of AAPL with many having it as a top 5 position, meaning large positions so that's a lot of selling pressure, at the same time they could use an AAPL bounce to sell in to and lastly the Q's need AAPL to be somewhat cooperative if they are going to make it to their resistance/breakout area.

As you may know, there have been some long term signals in AAPL, just like many other areas of the market including most of the major averages that seem to indicate a base of some size having been put together since October (late September for most of the market averages), so that's another trend that I'm not sure we are at quite yet, but I do think we are close and some if the local trade may in fact be blending together as an aspect of that longer term signal.

Longer term trend that has been building since October, it seems something is going on, but this is a bridge we are yet to cross.

As for local AAPL trade I put out a few updates Friday, but this one shows what I believed on Friday to be a bear pennant head fake move at support with an upside reversal candle.

If you can make out the red trendlines you can see the bar pennant pointed out Friday and the break below it (suspected head fake move in yellow) and the yellow arrows represent what Technical traders expect to happen so it really is an ideal set up to trap bears and force a short squeeze, it's also at support from an earlier (November) hammer bottom with high volume as well as Friday's Morning star reversal pattern, also with high volume.

 Here's the negative divergence on a 15 min chart sending AAPL lower to support and the positive divergence right at a slight break below support, likely hitting stops and orders.

The 5 min chart did the same over the last couple of days.

The open in AAPL wasn't all that impressive this morning, but since it has shaped up well intraday today.

There was positive momentum late Friday afternoon, that saw a small relative negative divergence on the open, but since the intraday 1 min chart has gone leading positive so this is looking better and better for those AAPL calls or long positions, at least short term until we understand how that bigger pattern fits in to the picture.