AAPL Update

This week I noted that along with the Q's the SPY and later the IWM all made an Igloo with Chimney price pattern more often than not, one of the best topping indicators for a particular cycle, not necessarily a primary top which is much larger, but there's no reason it can't be the end of a primary top.

I also noted that AAPL has made a similar, well exact price pattern. I liked AAPL as a short/Put on Feb 12th, about 3.5% lower, but since over the last couple of days, AAPL looks like it could start coming down any time. Again, it's not my favorite in terms of core short positions or trend positions, but it does look like an interesting opportunity for a trade. I don't bring AAPL up today because it's down, in fact I brought AAPL up yesterday as it was near ATH's as this Igloo/Chimney price pattern formed. It should not go unsaid that when numerous averages and assets, especially huge market movers like AAPL (shown last night to be 1 of 5 stocks responsible for all of the NDX's 2015 gains) all start doing the same thing, there's a trend there and this looks like the topping of the Jan29-Feb 2nd base/stage 1 trend or cycle.

Here's where the charts stand with AAPL, again, this is far from my favorite as a longer term trend short position, but there are all kinds of opportunities.

 After breaking the 2015 range the same as the broad market, AAPL looks to have put in the same rounding Igloo top with the right side chimney, just like the rest of the market and that's to say nothing of AAPL's weighting pull on the market and NASDAQ specifically.

 At the chimney area this leading negative divergence was not leading as AAPL declined, it was leading as AAPL was still at its highs before the decline started today.

This 5 min chart, if you look closely was also leading negative BEFORE today's decline.

As was the trend of this 3 min chart, all in the area of the Chimney portion of the price pattern which has been the head fake area that has been distributed in to in the past so often that we named the price pattern and it became one of our concepts.

Obviously I am not crazy about AAPL long here and believe we will see downside in AAPL beyond today's, if that doesn't matter much to you as you may not be in AAPL, it should tell you something about the broader market considering AAPL's weight and ability to single-handedly move the averages.