As most of you know (and if you don’t, and you are a trader, you are slacking) Apple broke out to knew highs on significant volume after earnings. The question now is, how do we play this brekaout?
The stock was over $100 in after hours when it reported Wednesday night, but failed to hold this major round number Thursday *and* closed at the day’s lows. These are not good signs. However, Friday the stock held gap support, which is is a positive for bulls. Breakouts to highs off of a cup and handle formation (which AAPL did) can lead to powerful upswings, which is another positive for this stock.
I might be willing to take a small nibble under $100, but I won’t increase position size until we see some more clear signs of strength. If the stock can not hold support, I would expect it to fall back to the 50 day moving average and may initiate a short position.
Paul J Singh 
This has nothing to do with AAPL, but what do you think of the QCOM breakout and pullback to support?FT
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Simple answer, Buy AAPL!
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Ragin: Thanks for simplifying 🙂MDJ: Lots of support at $44, however, I’m concerned that the stock gapped down on pullback.
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I would like aapl long around 95ish on a pullback. Otherwise I would pass.
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The volume was fairly high also during the pull back of QCOM, would that be another warning sign?FT
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You are right, MDJ. It’s not the type of pullback I look for. The stock could go up, but it’s too high risk for me.
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