There Goes AAPL

The only two positions I opened for this move, SPY calls which I just closed for a small gain and AAPL calls which I've held out (not hope, because this has been based on objective data), let's just say I've held out for patiently with the intraday underlying trade in the QQQ looking the best of the averages, it seemed like another hint that AAPL would make a move.

This is a great example of Paper, Rock Scissors, I think we all know the hand game, Paper beats Rock, Rock beats scissors, scissors beat paper. The point here though is divergence size and multiple timeframes as it was the same divergence that both kept me in the AAPL calls and that have me convinced AAPL is going to see some decent downside and if I can get a decent price concession that lowers risk (an AAPL bounce), I'll be glad to take a short position or Put in AAPL.

For now...

 Intraday this is what has been going on with AAPL, it took a hit and saw intraday distribution on the gap up sending it down and in to the red where it did take out some $515 stops. Since then the move on the upside in to the green has been in line with 3C moving like price.

The 5 min chart alerted us last week something was going on with AAPL

The 10 min chart as well, I'm not convinced this is a core short, but something seems to be going on that is worthy of a position trade, but as usual, I'd only enter on a price concession that will give me a better entry and lower my risk profile.

Ironically it's the same 10 min chart that has kept me in AAPL. This is where analysis gets interesting. Keep comparing the 10 min chart above and the 10 min chart below, they are exactly the same.

This is that same 10 min chart zoomed in to intraday perspective showing a positive divegrence. If you look at the chart above which is leading negative you will see this same area.

The correct interpretation of this chart is that the 10 min positive intraday above is more than enough to move AAPL to the upside, but not only because of it's limited or short duration "foot-print" or base, but also because of the position of the chart above, this is almost certainly guaranteed to fail at some point soon.

The chart above this one has a larger foot print and a much larger leading negative divergence which is always stronger than a relative divegrence like the one above.

How do I use this information? The main trade or highest probability is to play AAPL short, however nothing moves straight up or down, this is where Cramer's, "I'm bullish or bearish" leaves you on your own to cross the swamp

The shorter term trade is much more speculative and has much less profit potential, this is why I have to leverage it up using call options, but once the move on the upside gets in range and I start to see the intraday charts go negative, I want to close the call and start looking for the longer term short position which has more profit potential and doesn't need options leverage.

THAT'S MULTIPLE TIMEFRAME ANALYSIS AND HOW IT CAN BE USED.