Rob Gives You AAPL And Elephant In The Room Strategy Updates This Weekend

Welcome back everyone!  As we are wrapping up our Friday, let’s start by reviewing a couple key points.

A couple days ago I mentioned Apple to you guys.  Some students have been asking about Apple and how it was a big opportunity to buy.  I said if we could get through the $98 level, that it would be a great opportunity to buy up to the $100 area.  We can’t get too excited until we get above the $105 area, to show it is support, then push back up.  That could bode very well for a much bigger move with Apple.  The short term trades could really add up.  We have moved three quarters of the way to that possible target.  You can see how the trailing stops can help it work out very well.  Keep the trailing stops tight though because we are in the middle of the major resistances levels.

The elephant in the room is the VIX.  I talked to you guys about it yesterday.  This continues to be important as we talk about the strategies for Monday.  We are still holding this 12 area on the VIX.  We are still meeting resistance in that area.  If we can turn around on Monday by getting above the 13.20 level, we could possibly see a strong rally on the VIX.  The reason why that is so important is because we saw that every time the VIX would pop, the market was very anxious to drop.  I was able to point that out live in the trading room this morning.  That was instrumental in keeping some of my new traders from hurting themselves.  That was right before the market dropped and could’ve lost them a lot of money.  It is not always about how much money is made, it can also be about how much money is kept.  We are at these critical levels now.  Today you are starting to see some cracks in the foundation.  There are Doji stars, pullbacks well off the highs, and containment within yesterday’s distribution bar on the RUSSELL.  Everything that I have said to you on last night’s video has continued to hold true.  The speed lines will be catching right up to price.  That makes it very easy for us to open up on Monday and be below these.  We are going to see if the VIX pops above the 13.20 heading towards 13.50 and beyond to look for shorts.  That is especially true if we are below the speed lines.

There is also a possibility of a surprise.  The surprise is that we roll over, open up, and start pushing down towards the 12 area.  That would lead to a rally here.  That would be the exception, not the rule.  However when those type of exceptions happen, they could be very powerful.  When the sells don’t sell, that could lead to a huge blow off high.  I would be very aggressive to see if we can push below the 12.50 area.  I would be interested in looking for long side opportunities.  I would be more cautious for long side opportunities.  Any signs that the market could pop, the market could drop.  Unfortunately with the world events, there is a lot of risk out there.

That is the play book for Monday.  That is also how we will be playing Apple using short term trades.  I know you all are anxious to go long with Apple, but that is just not here now.  I would continue to point all that information out to you guys right now.  You guys all have a great weekend and I will see you all on Monday.

Leave a comment!
Read previous post:
Nice Trading For A Consolidation Day About To Break Out

Okay Gang, let’s make a quick video here for you this evening. Couple key points for you to remember. First...