AAPL - wide earnings gap. The setup felt similar to my RIM.
TSX trade from Monday. After
gapping lower, price carves out a tight sideways pattern until the
down sloping 5 period
ema catches up. We had two
NRIBs, the second of which was NR7 leading into price expansion. The BO closes near its low which is one of my
critical success factors in this type of setup. I took a partial as price approached the round $ number on the 3rd
WRB.
JOYG was not a wide gap, but it carved out a number of long upper shadows and could not close above the down sloping 5 period ema. Short the break of red inverted hammer. Again, the BO closes near its low signalling a great start. I missed my partial on the third WRB, so I tightened my stop, but I was rewarded with a hanging man and price broke through yesterday's pivot low at the $50.00 pt. I tightened the stop again as price consolidated at $50.00 and was stopped out on a partial. Shortly after, price swooned down to S2 (red line) on a huge volume spike and that was the end of the move.
Today was the flushing out day that we've all been waiting for. I took two longs this afternoon AAPL and RIM.TSX. Here's a picture of the AAPL trade. The bullish rounded bottom is a great long signal because it shows that demand exceeds supply. Everytime bears try to push price lower, more buyers step up. I'm holding a partial on RIM.TSX for a swing with a BE stop.
