Wednesday, February 21, 2007

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

The first two charts are before and after daily timeframes of the AAPL setup. AAPL was very active in the pre-market and seemingly not very mindful of the market pullback caused by the CPI data released at 8:30. I checked the daily timeframe and saw that it closed at an important pivot point as marked by the blue arrows. AAPL had been basing for a month and yesterday's close was strong. I wanted to buy on a break of yesterday's high, but I wanted to see and feel the open before pulling the trigger. I had two targets as marked by the black lines.


As you can see, I released my buy order seconds after the open. The volume was mega huge so I didn't have to worry about choppiness. AAPL did a four stick vertical, momo move and hit my preliminary target after about one hour, at which point I took a partial. I exited the rest of the position into the close. I was holding out for a tag of the secondary target, but it was a little too ambitious.



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