we're looking at apple ( nasdaq:aapl ). i had mentioned this is no big discovery on my part.anybody with two eyes, actually even one, could see this. the50 and the 200-day moving average were crossing over
aapl price chart, this prior resistance here. once brokenthrough, it was also, you could say, support. it was obvious that thestock was in an uptrend, and then they came out with their iphonethat just kind of put everybody to
sleep. this stock had somesupport here. you're looking at this stock, it's yourunderstanding that you think this stock is going to hold,so what happens? it opens up in the morning, let's use a 5-minute chart, so it opens up in the morning, it'strading at 461.00. that's where it opens, so let's look and see where thatis back on the daily chart; 461.00, it's pretty much okay below the 50but its at the 200-day moving average. maybethat's okay, i don't want to get shaken out of this stock, right? that's whatyou're thinking.
okay, so right awaythough the stock starts moving lower and you're saying, "you know what? i thinkthis might be a problem. i wonder what everything else is doing?" you know what idon't really care about? i don't care what the nasdaq 100is doing because apple's ( nasdaq:aapl )such a huge component that, that you know it's going to prettymuch be doing the same thing. but i want to know what the s&p 500'sdoing. so again, this is apple ( nasdaq:aapl ), gapped down
and kept going. the s&p 500 gapped up, held its gap. dow jones industrial average gapped up,held its gap, thank you boeing ( nyse:ba ), united technologies ( nyse:utx ).the point is, right away you could see, if you had a sense of the daily chart, where you're saying,"this is support." but actually, where is it really? well, maybe right around 460.00, somethinglike that. then you're zooming in intraday and you're seeing that thisstock indeed
was holding at 460.00, all the way upuntil the magical moment in time when it wasn't. that's when you sell this stock. so you would have known, and i'm not talking just aboutapple ( nasdaq:aapl ) here, i'mtrying to help you apply these principles to yourcurrent trading. these are the things that you want to be looking at. you look and see which way is the marketgoing? which way is my stock going? my
stock's going against me andi don't like that. let me look and see what themarket's doing, because my stock, "quote" going against me, might just be giving me an opportunity tobuy more, or might be telling me it's time to headfor the exits. so what we saw here, when we comparewhat's happening in the dow, again, forget about the nasdaq 100, but we saw what was happening in the dow and thes&p relative to apple ( nasdaq:aapl ), now this thing breaks 460.00, youwant to be out in this thing.
so when you see this type up of atrend break, with this type configuration that i'm talking about, just sell now and askquestions later, because you can always buy it back. happily here, you can buy it back at 440.00, probably, instead of 460.00. so it's right to sell theseweak stocks on days that are really strong; you justwant to be out there.
