McShorty Stands Me Up
My McShort of Apple (NASDAQ: AAPL) hasn’t materialized:
The volume is still puny, so I’m certainly not going long (not that I’d go long Apple anyway; that would be heresy). So still in “watch and wait” mode.
Same story on the Qs (NASDAQ: QQQQ):
I would note that, with the 9999:1 positive tone from all the talking heads (and headlines) today, I’m still so very skeptical. A breakout above the February highs will change that, but nothing less.
And did you notice anything curious about the largest percentage gainers list? Yeah, me too. Only two over-$15, heavy volume stocks on that list. Very, very thin. Doesn’t quite jibe with the “raging market” mood.
I won’t be convinced that the bull is coming back to the barn until I hear some more cowbell on this one. Let’s watch…
Fan said,
April 4, 2007 @ 6:17 pm
then check out RSH.
too much cowbell, mayhaps???????
Will said,
April 4, 2007 @ 6:38 pm
Fan- wow! RSH touched that (3/26) 27.88 high yesterday and never looked back. And cowbells everywhere this morning as the breakdown of the Opening Range at 27.50 was nearly picture-perfect, as well. Thanks for pointing it out!
Fan said,
April 6, 2007 @ 6:20 am
I spoke too soon? RSH had just enough cowbell yesterday. What gives?
Will do you have a theory? Good Friday to you.
Will said,
April 6, 2007 @ 6:38 pm
Fan- You mean as to why it didn’t drop further? I think it was just a classic selling- into- resistance play, with the resistance being that 3/26 high. The daily chart itself wasn’t technically overbought, and the overall market is rising in the short term (albeit slightly), so it tapped that high and fell back. On yesterday (4/5), the buying came right back in as people (rightfully) noted the pullback into what is still an intact uptrend.
Had that same tap- and- fall happened near major longer-term support (200 SMA or major trendline), and that support had fallen, you’d be in a nice, longer swing trade. But I think the little 1-3 day plays like this one are *very* short-term, “reaction” type opportunities and should be traded as such.
Wednesday (4/4) and yesterday (4/5) both made for beautiful daytrades, no? Yesterday morning formed a beautiful flag, touched exactly 27.17 three times, then broke upward and ran like the devil.
‘Course, this is all just me yammering. I didn’t even see this thing happening until you pointed it out. (Thanks, by the way).
One other thing- notice the way Wednesday and Thursday had nearly identical ranges. That formation can make for a good trade entry, if the next trading day opens near the top of the formation then breaks long, or opens near the bottom and breaks short.
Fan said,
April 8, 2007 @ 6:36 am
Nice. Thanks for commenting.
McShorty Shows Up • dummyspots.com said,
April 11, 2007 @ 10:12 pm
[…] There are any number of charts that are showing a short setup, but if you’ve read my previous posts you know I’ve just gotta show Apple (Nasdaq: AAPL): […]