Patience

Both Apple and the S&P 500 look like they're in corrective mode this morning. Below 644 on Apple will be the signal for me. And e-mini futures are signalling a down day after Friday's reversal.    So far it looks like much patience will be required.

I had a great week trading Apple, even with a monumental failure on Friday after I bailed on the 670 calls at the open. Later, I took an ill-advised joyride with the 665 calls and totaled them. However, even with their total loss I still managed to ramp that account up by 1.76%.

I also got a little too happy with some SPY 147 calls that afternoon after dumping the 145 calls into the morning's high of the day. I held the 145 puts and I guess I wanted something against them in case the S&P bounced in the afternoon or early this week. With futures down this morning, I will need to go to work at lower levels and leave the 147 tranche alone. I'm interested in the 1455-1450 area with 146s and 145s.

Below that level could get complicated quickly and see a revisit to the 1435 level or worse.

I should also note that my sudden interest in trading Apple does not mean I'm suddenly bullish on the company. It means that its chart is showing clear wave patterns and seems to be respecting Fibonacci as well. As a trader, these are my bread and butter.

Apple is subject to intense adulation and fascination worldwide, conditions which tend to create clear wave patterns. These conditions will not last forever, either. In my opinion, the stock is at a juncture where there are large amounts of money to be made on both sides -- long and short.