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Option Millionaires was started in February 2008 to provide traders with information about option trading. Led by three career option traders, whose pseudonyms are JimmyBob, UraniumPintoBeans, and Vantillian, they started one of the most popular option trading communities on the web. Now, Option... More
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  • Apple (AAPL) Potentially Targeting $500 – Should We Believe In The Breakdown? 1 comment
    Jan 10, 2014 7:08 AM | about stocks: AAPL

    After regaining its "market darling" status again in late 2013, the world's largest company has lagged. Now, the chart of Apple is pointing to $500, or $35 lower, with yesterday's price action signaling the breakdown of a double top reversal pattern.

    (click to enlarge)

    Apple (NASDAQ:AAPL)

    (click to enlarge)

    So, traders and investors, is it a signal to sell in anticipation of a 7% drop? I don't think so, as the broad market continues to show few signs of gearing up for a significant correction (which could drag AAPL down by this much). Also, if we zoom out to a one year chart, Apple is still just above its uptrend support line dating to its July 2013 low. Therefore, it likely won't pay to be too negative on this stock until this support line is broken.

    (click to enlarge)Now what would make me VERY positive and actually lead me to buy some $AAPL? A pipe bottom. What's a pipe bottom? In short, it's a down day, with a large red candle, followed by an up day, with a equally as large white candle. Statistically, these patterns are one of the most reliable and often follow through with days to weeks of further gains. And, with the NASDAQ 100 futures, as of 6:55 AM EST, up over half a percent so far, a pipe bottom occurring today certainly does not sound like a pipe dream.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AAPL over the next 72 hours.

    Stocks: AAPL
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  • User 154674
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    article shows huge crowd turn out for apple stores for their holiday event today....and we even haven't hit the jan 17 date for china mobile sales

     

    http://bit.ly/1cKRfA0
    10 Jan, 01:12 PM Reply Like
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