Wait for it
- Posted by hcpg
- on December 15th, 2012
Like most traders we love trading $AAPL. But we don’t trade it that often– just at the big, pivotal juicy places. The last time we traded AAPL long was a swing initiated on Nov 16 when we tweeted our position. That one was good for 60+ points (our rule: if we tweet our entry, we tweet our exit). Our next trade will occur if it reaches 470-480.
We’ve said often that if the weekly 50sma didn’t hold on $AAPL then next big support was the weekly trendline. Well guess what– it’s getting close — 6% away– which considering recent volatility is not much of a stretch.
There’s a reason why traders love $AAPL. It’s because it trades via the playbook on the important places — that is, it does what you expect it to do on the major spots. Once that changes (and it actually is starting already–more difficult now to game it than it has been in a while) then it will leave the radar of momentum traders like us, and likely that will also coincide it with becoming a value stock. Until then though — it’s going to be front and foremost on most of our trading screens.
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