AAPL Update

If there's one trade that seems to work with AAPL on just about any time frame you chose, it's fading a gap up. AAPL has been selling gaps up as soon as they start since (well the first I remember was 4/24 earnings). Back then we had signals that Tech and AAPL were going to come in to rotation, I believe AAPL reported that night and gapped up the next day, the 3C chart is so clear it's unmistakeable and so was price action after, the moment it opened there was distribution.

Well the same thing today on this morning's gap up. However as far as the short term AAPL long trade (it was considered short term and that's the reason it was an options trade rather than an equity trade), here's the update-it's been touch and go, but it looks to be shaping up.

 Even on an intraday 2 min chart an daily gap up there's distribution right on the open, since the 2 min chart has shown some improvement, I'd like to see 3C move to a new high like the blue arrow I drew in.

 A little bit ago the 3 min chart and 5 looked excellent, since the 3 min has pulled back a bit, it's still in a leading positive position, but again it would be nice to see this resolve to a clear leading positive divergence with a new high like the blue arrow I drew in.

 The 5 min chart also shows the opening distribution and a leading positive divergence that is pretty clean. Remember though, this was always meant to be a short-term trade, the longer charts....

Like this 30 min are arguing for more downside. Note again even on this longer timeframe, the gap is distributed almost immediately.

There is still a matter of a longer term trend on a 15 min chart, it would be trend 3 if anything, but if it builds over the next month or so, it could be an impressive trade.

As for the closely correlated QQQ today...

 3 min chart leading positive...

 5 min also leading positive, both went positive at the day's lows.

However don't forget the bigger picture, this 15 min chart makes it pretty clear, I always suspected "Trend 1", the fast, sharp move higher would be a segue in to trend 2 (down) as trend 1 would serve as the head fake move and from the looks of the leading negative divergence during trend #1's consolidation, it seems to be right on track with expectations.