Around midday AAPL capitulated on a huge volume spike. As soon as a reversal was confirmed, I took a long position. When a stock capitulates intraday, it sets up a reversal back to the base from where the selling began. As soon as price reached my target, I booked my profit. These types of plays, generally happen quickly so as soon as you see a huge volume spike at the end of an intraday price plunge, its time to find your entry point.
Thursday, August 24, 2006
Trade of the Day - Apple Computer Inc. NASDAQ: AAPL - Midday Capitulation Play
Around midday AAPL capitulated on a huge volume spike. As soon as a reversal was confirmed, I took a long position. When a stock capitulates intraday, it sets up a reversal back to the base from where the selling began. As soon as price reached my target, I booked my profit. These types of plays, generally happen quickly so as soon as you see a huge volume spike at the end of an intraday price plunge, its time to find your entry point.
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2 comments:
Hey Glenn,
You're right the battery story isn't all that significant for AAPL. My gut tells me that if the market rallies tomorrow, so will AAPL. If, on the other hand, we have another weak chop chop session, AAPL could come under further weakness.
Thanks James!
The great thing about this setup is speed. You can in and out in a relatively short timeframe and then move into something else.
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