The collision of global markets and social mood

Thursday, January 24, 2013

Patterns: Similar But Larger

AAPL is trading at the lower end of the range cited (471.41 - 464.13) in yesterday's AAPL post.

I do not have my equities data set for overnight trading, but the last quote I saw was 460. Since there are lower areas of chart support around 400 and below, I will not be interested in playing AAPL to the upside, even with call options, should it get below 450 for much time today or tomorrow. But since the potential upside is great (550-600), I still like the potential risk/reward of its bullish falling wedge set up.

The overnight action in e-mini futures looks similar to yesterday morning at this time, only larger in scale. Prices fells sharply last night after AAPL's earnings miss, and have recovered somewhat, but in a choppy fashion. The market may indeed trade lower today, but as long as the S&P cash index remains above 1485.16, higher highs may occur.

Advancers and decliners were negative again yesterday as the market made new rally highs, which is not healthy, but will not matter until it does.

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