Thursday, March 29, 2007

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


Today was a gap fade day, but I didn't play that card because the Qs opened right in the middle of yesterday's range and I find that a little too tough to trade. I got a quick hit with a short on PAYX in the early going and then it was a long time before I was able to find a tradable setup.

The AAPL trade is pretty straight forward. The only thing I didn't know for sure as the pattern was developing was if it would break to the upside or the downside. I always set my orders two ticks above or below the base in order to avoid anticipation and false breaks. I've posted both the 15 and 5 minute timeframes so you can see the volume spikes that alert me of a change in direction.

4 comments:

bp said...

Nice explaination, thanks. And the 2 charts to compare and contrast is very helpful

Peace

Jamie said...

Thanks for the feedback BP.

bl said...

A 5/13ema crossover on 5' charts gave alot of signals, esp shorts: sndk...the whole semi sector, etc. See what you think. Thanks

Jamie said...

BL, the crossover was a heads up, but the real signal that I see was a break of yesterday's lower trading range. SNDK, NVDA, VSEA,... all broke down.