We just finished day 26 of Apple closing above the 5 day exponential moving average, only once did it go as far down as the 10 day simple moving average and even then it bounced back rapidly. Congratulations to all long Apple traders, investors, put writers, and call option buyers, moves like this are why we trade. It would be very healthy at this point for us to continue to under go some consolidation in a $536/$548 Darvas box as we have over the past two days. Of course we have been spoiled with the monster move this year and are probably troubled when it does not go up 1% or close at the high of the day. We need to give investors and traders a chance to accept these new levels and then prepare for the run up into the next earnings announcement. If we can break $550 the uptrend continues, if we lose the 5 day ema it could signal a correction. Stay vigilant, do not get complacent, manage your risk carefully, let’s see what is next for this monster stock. I am long until we lose the 5 day ema and it does not retake it by the close or volatility expands to $8 under the previous days close. I also may do some shorter term trades inside these price levels if they hold by buying support.
