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Sunday, November 14, 2010

AAPL Stock Looks Vulnerable To Downside

- It isn't often I post a technical snapshot of stocks other than SPY, but I wanted to share with you my technical analysis of AAPL, because the stock looks vulnerable to the downside.
- While AAPL prices hit consecutive new highs (albeit barely) in the past few weeks, most my indicators failed to do so. Could this be a classic case of bearish divergence?
-As for SPY, while Friday's close of 120.20 keeps it within the bullish channel, my indicators are showing higher probability that SPY could break out of this bull-run into a new pattern. What that pattern would be is yet to be determined, but I would think that SPY would move within 117.5 - 123 trading range for the remainder of the year.
- December and January expiration options have traditionally been good months to sell premium due to the upcoming holidays. My FVE indicator is rising, however, so I would hold off selling options until a more opportune time.

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