AAPL has been the darling of the market. It may now be "priced to perfection"
... but the slightest misstep or news could make it drop fast.
We are now seeing a very nice (red label) ABC corrective pattern.
Could the earnings announcement that is due after the market closes be the trigger?
If we top near the B wave as shown by the Bat pattern harmonic, we can expect the wave C down to at least give us an C=A relationship,
or a deeper drop in a C= 1.272 x A subtracted from the top of the B wave.
With earnings coming up we'll buy deep in the money puts today.
Other interesting notes - our Astro trading projection for the market has Venus conjoining Neptune, and both planets square with Mars.
This usually sets up high hopes for the market today, but ends with disappointment.
Markets get uneasy and very tense....
Could the heavy weighting of AAPL in the indexes trigger a hard drop the market?
... but the slightest misstep or news could make it drop fast.
We are now seeing a very nice (red label) ABC corrective pattern.
Could the earnings announcement that is due after the market closes be the trigger?
If we top near the B wave as shown by the Bat pattern harmonic, we can expect the wave C down to at least give us an C=A relationship,
or a deeper drop in a C= 1.272 x A subtracted from the top of the B wave.
With earnings coming up we'll buy deep in the money puts today.
Other interesting notes - our Astro trading projection for the market has Venus conjoining Neptune, and both planets square with Mars.
This usually sets up high hopes for the market today, but ends with disappointment.
Markets get uneasy and very tense....
Could the heavy weighting of AAPL in the indexes trigger a hard drop the market?
Comment:
327.26 is the stop
Comment:
Holding our puts, watching the FED announcement today. The price action is still "kissing" the underside of the support channel (now resistance) drawn from the Jan 6 lows. even if 327.26 is breached a bit, we'll give it a bit more room to play out the earnings news for a few days.
Comment:
see other updated chart showing the possible megaphone pattern and the price action "kissing" the underside of the old support channel that was broke on Jan 24.
Price action gave us a shooting star daily candlestick. This could be a powerful reversal candle to the downside
Price action gave us a shooting star daily candlestick. This could be a powerful reversal candle to the downside
Comment:
As expected, AAPL was "priced to perfection". The "Buy the rumor-sell the news "was the correct play here.
The minimum C wave target of 309.08 was hit today.
We sold the puts and banked $2960.
Look for updated chart posted for how we played AAPL
The minimum C wave target of 309.08 was hit today.
We sold the puts and banked $2960.
Look for updated chart posted for how we played AAPL
The 1.272 x A is a probable at 304.44
... and if this pattern develops into an expanding megaphone, the low target (also probable) would be 300.08. That is right next to our 1st calculated target at 301.33. We like this one the best at this point.
We expect the price to drop down to the lower blue support line. Targets could be reached by mid Feb.
We're Holding our puts.... remember AAPL was "priced for perfection" as most retail traders "bought the good news" this morning. However, heavy institutional selling will catch the little guy on the wrong side.
We can't just go by "best earnings ever" we need to think about forward expectations.... stocks trade on the future expectations about 3-6 months ahead.