Still sitting out...

Apple pushed up pretty strong yesterday. Closing at a price of $594.09, and with a push up pretty fast. I am looking for a pullback as the price has reached Over Bought conditions.

Today it has backed of and is in selling mode right now. Sitting at the top with a doji. I want to see price drop back tomorrow. I have a sell position in now only looking for a $1 move down to play it safe.

If price drops back tomorrow, I will be adding into a Put position for the rest of the week.

Well traders, it has been an exciting couple of days for Apple after they announced earnings. Just play it safe right now until price gives you a better signal. There is a large gap now and gaps like to get filled.

Good luck and Happy Trading!!!

Sitting Out trading day after AAPL earnings report...

Today is a day to sit back and go do something more important. I am a avid Apple trader and this security is the only thing I seem to trade on a daily basis.

After a great earnings report, the price jumped about 40 points after hours and stayed in the $568 territory till open the next morning. When that happens, I will stay out and not play the market that day. There is just to much emotion with the stock and it could be very dangerous.

I am looking to set up for tomorrow after close for a break above the highs of today. It is a doji or dragonfly candle today and has a bias to the upside. What I see is that the price will fall back tomorrow since traders and investors will like to take profits. Then price could bounce higher next week, as being Friday tomorrow with the weekly option expiring. It would be wise to wait for a entry next week. If you are a investor, this could be a good time to set up options for the next quarter. I am looking to make a buy if the stock pulls back a little, and buy options about 4 months out.

Good Luck Traders.... Till next time...