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Has Apple become just to big to grow? Has this monster stock finally ran its course? I think not, it is taking over newly created  markets like tablets not losing them. Their iPhone and iPod changed the world. They are the company to beat in both fundamentals and technicals. While I trade the price on the chart alone not the company,  I can see why the chart speaks so strongly of this leader in every market uptrend.

I am currently holding Apple January $390 call options, and would love to add to this holding if I am given the opportunity at the 10 day ema or the 50 day sma. How many people are thinking like I am? How many traders are expecting Apple to run back to all time highs? If Apple does not reach new all time highs in the next few months it will be the first in a very long time for this monster stock.

  1. Currently a new uptrend appears to have begun with the 10 day exponential moving average as short term support and the 50 day moving average as 2nd level support.
  2. Historically the 50 day simple moving average in a downtrend has been support and if that is lost the 200 day moving averages have had buyers rush in and hold up the stock price. The stock has buyers waiting for these points.
  3. Apple has excellent liquidity in its options, tight bid/ask spreads with thousands of close to the money options trading daily and tens of thousands of open interest contracts in near the money options.
  4. Apple has weekly options to make short term bets and get the full move with little capital outlay.
  5. It will benefit from its movements being based on profits from iPads instead of the daily financial European headlines. I believe the current 3 year loan program from the EU will stabilize the markets so it can reward the winning companies for earnings and allow them to start moving up.
  6. Over the past eight years Apple has always climbed back to make new all time highs, it has never been down and out for to long.
  7. Apple’s stock price is stable and less volatile than others because of its massive following by professionals, almost nothing sneaks up on its price.
  8. It is a market leader.
  9. It has held up well in a weak tape recently.
  10. Historically the stock runs up before earnings.