Tuesday, February 27, 2007

Dummy Trade of the Day - Apple Inc. (Public, NASDAQ:AAPL)

AAPL gapped down on the open due to delays in Apple TV and general market fears. It rallied towards its 200 MA and downsloping 10 period EMA as it attempted and failed to regain $87.00. I took a low risk, dummy short as AAPL fell out of its narrow trading range on an uptick in volume. AAPL quickly took out its OR low, followed by another lengthy consolidation. Selling picked up in mid-afternoon for another leg down. Around 3:00 I felt that AAPL was capitulating and would reverse so I covered and went long hoping for a bounce into the close. The long entry was traded on a 5 minute chart with a 30 cent stop. It started well and I kept tightening my stop accordingly. Unfortunately, my screen froze and my stop was not executed so I am looking at a loss on the late day long entry.

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