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 Strategies & Market Trends : Technical analysis for shorts & longs

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To: Davy Crockett who wrote (47734)4/13/2012 1:02:33 PM
From: Johnny Canuck of 49820
 
I think there is a psychological shift happening to traders. It is still too early in earnings season to see if it takes on a deeper conviction with traders.

aapl has some decent support at the $600 level. I would be more inclined to set my initial sell point at a break of $600. Keep in mind aapl is a volatile stock so I would set my stop a little looser than normal as it is easy to get stopped out early. The next support level is $550 and then there is a big gap in support based on volume by price.

aapl has been down 5 days in a row and volume has been declining each day as the selling pressure dries up. I would expect a bounce in the next 2 days. The strength or weakness of the bounce will tell you more about the psychology of traders in this stock.

Despite the 5 days of selling appl is still only off 3%. That is not much for such a volatile stock.

Remember that appl is product release and earning news driven stock for the most part. In between these event you are correct to assume it will loosely track the indices like the COMPQ as it is broadly held as a surrogate for technology.

appl in my mind has been less of a technology company and more of a lifestyle company like some of the fashion brand companys like KORS. It depends on selling consumers an image that just happend to be based on technology. Based on P/E it is cheap compared to other technology companies. It is at the high end of the P/E for a consumer lifestyle company though. Its execution is what has given it the premium. Without Jobs, can they achieve the same execute only time will tell. Some of that uncertainty is being priced in.


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