Wednesday, March 28, 2007

Quick Hits - AKAM, BRCM, AAPL, and ARRS

AKAM and BRCM gapped down and tried to rally back up to their pivot points but could not close above the downsloping 5 period EMA so I shorted on a break of the consolidation lows. Both AKAM and BRCM had large volume spikes on the WRBs which signaled that the move was almost over.

ARRS was a midday retracement setup. It had all of the elements in play for success:
1. The ninth stick fell into pivot support dating back to March 22nd on a volume spike (capitulation) and closed just above the PP.
2. It observed support of the rising 20 period EMA.

I entered as price took out the high of the ninth bar and sold into strength at the 68% Fibonacci retracement.

AAPL was a little trickier today, so I waited for a low risk opportunity in the morning and a pivot break in the afternoon.

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