Trade Idea: AAPL (long)

AAPL worked very well last week as a hedge, it wasn't my first choice as there's no leverage unless you use options, which may be something to consider here, but in a little larger size it hedged all trading shorts and added to the portfolio's overall gain, and then I was done with it in a day.

I'm going to do the same exact thing and add it as a hedge (AAAPL long) for the trading portfolio, maybe an options position, that will be decided in a bit and I'll post it of course before taking any action.

Here's what I see and like about AAPL, although I'd prefer something more generic like a leveraged industry group, this just looks to be the better choice.

 More important than the short term long/hedge has been this 15 min negative chart in AAPL, although I have taken no action on it because the 30 and 60 min were in line, but that is changing so AAPL looks like what may have been a counter trend rally as AAPL lost -45% off the all time highs, may be coming to an end.

This is the chart that really changes things and takes AAPL off the "Keep an eye on it" and puts it in the "Trade Watchlist", the 30 min chart very unambiguously has deteriorated badly from what was a perfect in line status or confirmation.

This is one seriously ugly negative divegrence and I'm glad to see some movement and AAPL back in play as a trade. The area in which 3C went leading negative is just as important as the divergence itself, on a gap up which is Wall St/'s thing, sell in to strength and this looks to have been very strong selling in to the gap up.

Intraday 2 min AAPL has a "W" base so it should be good for a move to the $570 area.

The 5 min chart is clear about this divergence too and the $570 area is a perfect area to look at AAPL as a possible core short.

This is the daily chart, the negative divegrence is seen here as well which means serious business, I'm thinking normal market behavior and head fake moves would put price around the yellow box which is about the same as the measured move target from the "W" base. I can't say we get that because too many other things are boiling up, but that would normally be what we look for.

For now, AAPL as a short duration trading long, I'll take a look at it as an options trade, but I'd prefer it broke under today's range to purchase a call/long option.