Need Help?  

1-888-998-3548

Apple (AAPL) Showing First Sign of Commitment to Upside Since Earnings

Scott Redler
Feb 5, 2013, 4:43 PM

Apple's (NASDAQ:AAPL) fall from grace has been precipitous and infamous in trading circles over the past few months, but could that narrative finally be starting to change? AAPL has been dead weight since topping out in late September above $700, shedding nearly 40% of its value in that time. The company proved the naysayers right in its January 23rd earnings report. Declining margins and sales growth have spooked investors that piled into AAPL thinking the company could never do wrong.

 

For traders like me who have watched AAPL everyday for the past five-plus years, it's hard to condition ourselves to ignore the symbol and focus on the price action. I have tried previously to be early to the AAPL bounce, and each time I have been left frustrated. That is until today.

 

 

AAPL today for the first time is showing some commitment to a bounce. The stock opened slightly higher with the market this morning, and chopped around for the first half our of the session before getting in gear to the upside. The stock has seen a steady grind higher the whole day, the first time we have seen this type of action since earnings. I believe this could mark a short-term bottom in the stock, but will take it day-by-day until the stock re-proves itself.

 

 

The line in the sand for AAPL that I will be watching on this trade is $452. If it violates that level then it is once again showing no commitment to the upside. I believe we could see a move to the beginning of the gap at $465, at which point I will reevaluate my size and expectations for the trade based on speed and composure.

 

AAPL finished the day up 3.5%.

 

 

 

*DISCLOSURES: Scott Redler is long AAPL

Last Updated ( Tuesday, 05 February 2013 17:09 )
Banner
© 2012 T3 Live, LLC
  1. T3 LIVE, LLC is NOT a Broker Dealer. T3 LIVE, LLC engages in trader education and training. T3 LIVE, LLC offers a number of products and services, both electronically (over the internet through T3LIVE.com) and in person. Through T3 TV, an online video network that is available through T3LIVE.com, T3 LIVE, LLC provides LIVE pre/post market and stock analysis. Through T3LIVE.com, T3 LIVE, LLC offers the "Virtual Trading Floor", a community through which independent traders (subscribers), as well as select T3 Trading Group, LLC Traders, observe a virtual trading floor environment (as described below) for educational purposes. T3 LIVE, LLC also offers web-based, interactive training courses on demand.
  2. Subscribers are able to see if traders are long or short and what symbols as part of best practices in regards to disclosure. Subscribers do not see trader' screens, trades or size of positions. T3 requires traders to disclose whether they are long or short and which stocks they are trading to ensure that the community is fully informed and that traders substantiate their opinions. This approach is modeled after the analyst disclosures that accompany commentary on particular stocks on CNBC or other financial news media (as per FINRA Rules 2210 and 2711).
  3. The seminars given by T3 LIVE, LLC are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
  4. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE, LLC or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.
  5. The videos and blogs shown on T3 LIVE, LLC are for informational purposes only. The investment ideas and expressions of opinion may contain forward looking statements and should not be viewed as recommendations, personal investment advice or considered an offer to buy or sell securities. T3 LIVE, LLC statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio.
  6. T3 LIVE, LLC and T3 Trading Group, LLC are separate, but affiliated companies.
  7. T3 Trading Group, LLC is a Registered SEC Broker-Dealer and Member of the CBOE Stock Exchange (CBSX www.CBOE.com). All trading conducted by contributors on Virtual Trading Floor is done through T3 Trading Group, LLC. For more information on T3 Trading Group, LLC please visit www.T3Trading.com.
  8. Global Trading Plus, LP (“GTP”) is the exclusive provider of T3 LIVE, LLC products in Europe, all the former Soviet Republics (dating back to 1991), and Israel. GTP is a separate company and has no common ownership with T3 LIVE, LLC, T3 Trading Group, LLC.