Apple has been probably one of my favorite all-time stocks for trading in. It is really the stock that keeps on giving. While it is in my opinion one of the best stocks/companies of the decade, it has also provided a ton of buying opportunities along the way. In other words it plays well with the “Official Technical-Analysis Rule Book” (not that there is such a book out there – maybe I’ll be the one to write it – syke!).
With that said, I got back into Apple (AAPL) for a myriad of reasons: For one, it filled the post-earnings gap where it went up into the 200’s before coming back down to earth, and held its intraday support very nicely in the process providing me with a very nice and clean exit to get out of the trade, in the case that it doesn’t pan out well for me. Always having a definitive area of support is extremely important to me as it gives me a clear-cut way of when a trade and the thesis it is based upon is no longer valid.
As for time-frames – I’d like to get a rally out of the Fed today and hopefully a follow-through tomorrow. However, I don’t see this as a long-term play as I still believe that we are in a down-turn with a short-term bounce at hand.