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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.