I have exited AAPL - here is why!

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I am sorry that I cannot always make the chart small enough to fit neatly on the left column. I want you to be able to see the details I want to point out.


I Hope this helps,


Juan

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As the stock was going UP, the trade reached a proift of $7,000 but of course, no one can tell the top unless there is a sign of some sort. Leaving the trade at a profit target could have been less profitable, or it could have been more profitable. I prefer to look at my T.A. indicators and make my decisions in due time.

First, the confirmation from OptionsXPress:


I admit that the move was early in the morning, as the stock had first gone down $0.50 and then up to $0.20 when I made my move. Thereafter AAPL went down as much as $2.00.



How was I so sure that it was time to get out? first, let's look at the daily chart, and my most used indicators:




Both the stochastics and the MACD oscillators seem to be weakening. The MACD shows a divergence: You see twon rallies, the second much weaker than the first. The Stochastics may be giving a sell signal as the fast curve crosses over the slow curve, but this is not a definitive signal. What really made me worry about holding the position (which was mostly bullish), was that the stock may be forming a double top at $69.00. Not convinced that the double top necessarily indicated a reversal, I looked at the 60 min chart. Here is what the chart looked like, at the time I closed the position:



As you can see the signals from the oscillatores were more definitive, including a shorter-term double top. I decided to take my profits and run. I then closed the position as a call calendar ratio first, and the second as a put calendar ratio. Notice that I did not delay. I could have left the put calendar ratio as a simplified trade, but there is really no reason to risk a transformation. I just secured my profit.

I do not rule out reentry on AAPL, but I will do it at my convenience, in advanced of the Oct. earnings report. For that there is over a month still to go.