|AAPL Bearish Engulfing Candle follow up|
|Monday, 03 October 2011 16:49|
In my blog from September 27th entitled AAPL Bearish Engulfing Candle: 7 reasons for the longs to be worried, the stock is down 28 points and the S&P 500 futures¬†is down 100 handles, nearly 10%.¬† I have a saying "Ours is not to reason why, ours is but to sell and buy", which means I don't care why I am right, I just want to be right and make money from it.
AAPL has a long time correlation to the broad markets and this pattern has proven to be a great indicator of quick and painful downside moves.¬† $373 was a great support point for the stock today, real near term support is $360-$365, then $345 for AAPL specifically.¬† The August 9th spike low of 1071.50 is support on the ES Z1.
A lot of stocks broke through support on Friday and are getting very oversold with today's action,¬†but that is no great reason to own stocks just yet.¬† I would love to see a V bottom tomorrow, huge down move and then a sharp reaction up in mid morning on enormous volume.
Overall I am bearish and why not be, but as a short term trader I look for opportunities and the V move would provide a great chance to make serious money.