AAPL Update

I'm keeping a close eye on AAPL for 3 reasons, 1) we have some members in some very leveraged options positions, 2) It can be a potential trade for others who might want to get involved and 3) because the Q's have been getting beaten up a bit more than the other averages and AAPL represents about 20% of the NASDAQ 100's weight so a mov there is about the same as the bottom 50 NASDAQ 100 weighted stocks all combined, in other words, AAPL is influential.

Today I have the same question essentially as yesterday's "What are the short term AAPL chart looking like?"

Here's the answer... I think the move is stronger now than it was earlier. I think this is good news for those who don't have a position and would like to look at a short/put position in to some price strength. For those holding Puts right now, it's time decay and generally speaking not good for the position (generally speaking as there are all kinds of variables.)

 AAPL's support/resistance zone that is important to traders is very obvious, just follow the money or in this case volume. I always say that it's the small moves in volume that most people don't notice that are the most insightful, EVERYONE sees a 500% spike in volume and there's no edge in that.

Today's volume is already higher than yesterday's, considering the support/resistance area, this becomes somewhat important in understanding what institutional money may be looking at or doing.

On a 5 min. chart support is drawn in at the red trendline, this is from the 12/31 breakout (from the descending triangle) intraday highs, you can see exactly where volume picks up right as price moves below that level -triggering orders.  Essentially the whole move is a head fake move as traders would have been expecting a descending triangle with a downtrend preceding it to be a bearish consolidation and then continuation pattern so they would be looking for a downside breakdown, the upside breakout seems to have caught a few at a loss as they had to cover and it brought in a lot of new retail money.

 Here's the 1 min chart, it was positive earlier going in to afternoon trade and as it pulled back it has an even larger positive divergence, basically smart money is going to buy at the lows, when price moves too high after 12, they sent it back down to accumulate a larger position which means AAPL should see a stronger bounce which is good for any of us who want to enter a short position-the higher the better.

 The 3 min chart's overall trend shows the accumulation prepared for Trend #1's move higher throughout the market and then right on the gap up opening, there was immediate distribution of AAPL, they took profits quickly. The 3 min chart is overall negative, but intraday it is moving with price.

 The 5 min chart also shows instant distribution as soon as AAPL gapped higher, we have seen this at least 3 times with AAPL, I assume they start selling so early because the positions are large, expensive and take longer to move out of. The overall trend is still leading negative on the 5 min, but...

Intraday it is at a VERY touchy area in which it could make a large leading positive divergence on an important timeframe. This could also fail, the signal hasn't completed yet, but looking at the shorter timeframes, AAPL has seen more positive underlying trade than we first saw. I'm assuming this is not just support for a consolidation and AAPL will move higher.