11:30AM AAPL + SPY Technicals Review

AAPL

AAPL consolidated all day, isn't surprising for a friday and pretty much what we expected based on indecisive indicators. However, this time it closed at an all time highs, therefore it is a significant achievement. Previously I've said that for Monday, AAPL should be allowed to finally have fun/run (non consolidation day). It would not surprise me if we divert from following SPY, since SPY is short-term overbought; 60min RSI is 76+, which means an immediate pullback on Monday is a possibility.

AAPL is likely to do a gap up and go. When AAPL closes at resistance and in an intermediate uptrend, it suggests a high percentage chance for a gap and go. It would be a higher percentage if the overall market were in the same position. In this case, SPY is overbought so not as high. (If somehow we have a big gap down then look to see if it holds the uptrend channel lines.)

*Gap and go, in this case means gap up and dip to 5min 20EMA and rocket up or just slowly grind up all day long.

SPY

Not much to say about SPY really, it went according to plan; small up and down for the entire day. It is overbought now on 60min chart, but not at pure extremes yet. (60min chart RSI 80 or above would be the extreme overbought condition). Immediate pullback on Monday has chances, the latest by Tuesday if Monday is another flat day like Friday.

 

Here's what we said on Thursday: The Sept Monthly 130 Puts, we will probably have to take the loss on Sept 10 or 11th, have to adjust to market dynamics. SPXU shares will keep for swing. 

That is still the plan for now and we will adjust accordingly. 

-Red Apple

9:55AM AAPL + SPY Technicals Update

AAPL

Looks like another consolidation day, another day off then.

SPY

Consolidation with bias up as expected, I think we're gonna just go small up and down today

-Red Apple

4:55PM Sept 6 AAPL + SPY Technicals Review

AAPL

Looks like I was correct, 675 to 680 was a much higher risk than the previous trade of 675 to 670. This time it took several hours to even reach a HOD of 678.25. Fortunately, I skipped another boring consolidation day.

 SPY

Fridays are usually continuation pattern of the current week's trend, so don't expect any significant pullback yet. Have to wait at least till Sept 10th or 11th. Hourly RSI and MACD are approaching to extreme levels, have to stay cautious of an imminent overbought pullback.
 
The Sept Monthly 130 Puts, we will probably have to take the loss on Sept 10 or 11th, have to adjust to market dynamics. SPXU shares will keep for swing.

-Red Apple

10:31AM SPY + AAPL Technicals

Entry

Last half of SPXU @ 40.05

Portfolio

September Monthly 130 Puts @ 0.68 (Average cost)

SPXU @ 40.90 Average [(40.05+41.75)/2]

 SPY formed negative divergence on daily and 60min charts and at overbought levels (not extreme yet) on 60min. Viewing this as last push still, will adjust accordingly when time is right


AAPL

 Could play 675 to 680, but the risk is much higher than the short swing trade I executed on Tuesday and profited (675 to 670)  on Wednesday. At the moment, indicators are still showing a consolidation phase so it is best to stay away

-Red Apple

5:11PM Sept 5 Review + Tomorrow's Market

Here's a small lesson/review on why I covered at 670.9 earlier today and managed to avoid a boring market.

 Channel support is why I covered in the morning and avoided the boring consolidation day

5min chart. See the slight break of channel line? It's a bear trap, next chart for explanation.

A slight break of an important channel support along with low RSI and bullish divergence on 1min chart showcases the requirements of a bear trap so I figured a rebound was imminent. It's all about vs reward, by covering at 670.9, I managed to avoid the rest of the flat day.

Tomorrow

Market (SPY + AAPL) should consolidate for the first half of the day 9:30-12:30, then if we get lucky we shall see some real direction.

-Red Apple

11:05AM AAPL Profit Exit

Exit

Covered @ 670.9

Profit

$4.2 per share

 I'm done for today, too boring don't want to waste time.

-Red Apple

9:44PM Limit Order Profit

Exit

Limit Covering AAPL @ 670.55

Since we did not short a lot of shares, we will only do this in one batch instead of 1/2 like other times

-Red Apple

3:54PM AAPL Short Triggered

Position Executed

Short AAPL Shares @ 675.10

This is just a quick small play, no biggie

-Red Apple

2:42PM AAPL Shorting Shares

 We're here, close to my 674.8 area

Entry

Limit short AAPL @ 675.10

-Red Apple

10:14AM AAPL + SPY Update

Consolidation day. SPY short positions already in place, AAPL can't do much with 674.8 as the next short term aggressive short area.

Taking day off, will be back if SPXU hits high.

 

-Red Apple