Long AAPL?

December 29, 2006 at 10:06 am by Will

Wanted to note that 12/27 bar on Apple:

AAPL

The action of that bar contains some very important points:

  • Opening Gap Reversal (OGRe)- the stock opened over 3 dollars down, spiked down another buck and a half, then reversed very strongly into the gap and rallied all day long. The OGRe was of course a signal for shorts to cover by around 78.50, which would have locked in a nice short-term profit for anyone who was short. I was not. Don’t know whether to be happy or mad about that. Missed the quick gain, but stuck to my guns on my resolution to wait on longer-term entries.

  • The volume was the heaviest since July, and one of the top few days of the year. As you know, I frequently point out that VHV (very high volume) days often mark tops and bottoms, and can be tagged as very strong support/resistance for trading decisions.

  • The day’s range was the largest since… April, I think. Wide-ranging days, like high-volume days, can mark a change in direction.

So, what… look for an opening to get long on AAPL now? Well, for very short-term swing traders, perhaps. Not for the newer, more patient me. And after all, this is Apple, and I’m duty-bound to watch for short entries on it. So I’ll be watching this rally and seeing if it shows signs of failing, in which case, you know what I’ll do. ;-)

 

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