Apple has fallen out of favor with investors as of late, despite a decent earnings beat (after guide down), and it's easy to see why. Given its track record as a market leader, and recent highs > 200, it's failed to catch enough momentum to get out of the danger zone. Looking at sell signals for a short entry, I've noticed a) it's caught in a descending channel on the hourly, b) it failed to linger in its upside support zone, c) it pays a dividend tomorrow (3 out of the last 4 dividend days have shown a red candle), and d) most importantly - every significant leg down first showed a gap up w/ follow on red candle, then followed by a major gap down.
I'm short until proven guilty.
I'm short until proven guilty.
Trade closed: target reached:
Sure enough. Apple gapped down. Still a smaller than expected candle though. Anticipating more selling into close, but closing as successful idea.