AAPL Stopped Out

If you work with something long enough, say a tape measure as a builder, you learn to identify small increments accurately. Yesterday I posted, AAPL Update / Trade-Set-up / Bellwether and this chart of a declining Rate of Change in AAPL's Trend Channel which has held it's entire move up from the 8/1-8/8 base.

 AAPL 60 min Trend Channel and declining ROC, "Changes in character lead to changes in trends, which is exactly what the Trend Channel was designed to do.

 This morning at 11 a.m. there was a confirmed AAPL Trend Channel stop out. For some of you not as familiar with the Trend Channel, it was one of my first custom indicators that won an award and I've been using it for years as an objective stop out rather than guessing which level is the right level on often sloppy and contradicting technical signals.

Once we have a stop out that doesn't mean a higher move can't be made, in fact they often are, but the easy money of the trend is now done and it is very susceptible to a reversal. I've noticed over the years I'm almost always better off exiting the trade when the Trend Channel issues a stop out than trying to capture a few extra percent as there's usually a nasty surprise and the money can often be used in better performing assets as the reversal process, which AAPL's declining ROC already shows it to be in, is often a choppy, meat grinder and any additional gains are usually pure luck.

 Here's the stop level intraday, the 11:30 hourly candle close below that level was confirmation, but notice AAPL is seeing resistance around the area which has nothing to do with any technical levels from the Trend Channel (like some stop out systems use a pair of moving averages, thus price lingering and testing one would not be unusual, but the Trend Channel relies purely on the behavior of the asset itself).

 If you look at yesterday's post, almost all of the 3C charts have deteriorated even more today, including this long term 60 min chart which often takes longer to move, it remains in a deepening leading negative divegrence. Again, at this point AAPL long looks like more risk than it's worth.

The 30 min chart has also made a new leading negative low today so there's heavy underlying flow in AAPL toward distribution  which is interesting because I noticed the same in XLK, Technology sector.

 The 15 min chart leading negative as well

The 10 min chart making a new deeper leading low.

I am not getting too much in to the intraday charts as there's usually more lateral slop,  the one thing I will look for is any kind of resistance forming, IF YOU LOOK AT ALL OF THE BASE CHARTS ABOVE WITH POSITIVE DIVERGENCES FROM 8/1 TO 8/10, YOU'LL NOTICE A HEAD FAKE MOVE TO THE DOWNSIDE JUST BEFORE AAPL TAKES OFF TO THE UPSIDE, THE SAME IS TRUE OF A DOWNSIDE/TOP REVERSAL PROCESS, A MOVE ABOVE RESISTANCE JUST BEFORE A TURN TO THE DOWNSIDE IS HIGH PROBABILITY.

Therefore the 1-3 min charts will come in handy in such a situation. Beyond that I'll be setting price alerts for AAPL including downside moves , head fake moves as well as resistance/support areas like the 5-day moving average, the last high in 2012, the 10-day and 22 day moving average and the 50-bar 5 min and 30 min charts. I want to know about any significant technical moves as I'm looking at an entry at this point.