Posted by K
on May 25, 2012
Comments Off on S&P 500 Weekly Chart ($SPY, $SPX)
Today the S&P 500 was taking a break and heading to the Hamptons for the long weekend (or maybe for the entire summer).
Is the market poised to absorb most negative news that’s already out there or what?
The Weekly chart looks to be bouncing although there are always fake-outs. For any newcomer that is new to charting just a note that each candlestick on the chart represents 1 WEEK of price movement so what happens on Tuesday when the market opens has no real effect on this chart until close on Friday.
The 50 and 70 Weekly Simple Moving averages are below the price supporting it and it looks like a trendline from last October is also still intact and providing some support and if this market has legs we might see 2-4% move to the upside until the Greek elections a month from now.
Click the chart to enlarge it.
I had long SPY call options and upon wanting to add today my subconscious mind decided to liquidate. We shall see if its smarter than my brain and can feel something I’m not feeling or seeing.
Have a safe memorial weekend,
Posted by K
on December 24, 2009
Comments Off on Apple Poised For a Big Move $AAPL
I have been watching Apple Inc. ( $AAPL ) form a symmetrical triangle for the past two months. This is a Continuation Pattern, which means that the triangle is used as a way to head higher if the trend has been upwards and with AAPL it has been.
A symmetrical triangle is generally regarded as a period of consolidation before the price moves beyond one of the identified trendlines.The sharp price movement that often follows a breakout of this formation can be captured by traders who are able to identify the pattern early enough.
The Symmetrical triangle pattern needs to have a few things working for it and we will check them off here.
1. Trend Should be at least a few months old: Check !AAPL is from march to december.
2. Duration of pattern should be at least 3 weeks old: Check! This pattern is 6 weeks old.
3. Breakout occurs between 1/2 to 3/4 of the way through the pattern: Check! It’s about 3/4 of the way.
So now that we checked a few major points off let’s look at a price target. We take the distance from the widest end of the triangle and in this case is around $20.
From the breakout at around $200, this being a bullish trend apple has been in we add $20 to the upside and put it at ~$220 for a potential breakout target.
There are a few hurdles here for AAPL though the $207-208 area is major resistance so if it can break that $220 is well in sight.
I bought a January $230 Call option at 0.23 to prepare for the move instead of putting major capital in the stock
Here is the chart (Click to Enlarge)
Update: I tried posting it last night but my host was down so i gave up. $AAPL is currently at ~$207.50 (in between the resistance I mentioned)
I have also sold my Call options for a hefty 140% Profit from yesterday’s buy-in price, if Apple breaks above 208 I might be re-buying some.