AAPL, not looking good
I mentioned in my previous blog entry that bouncing on this
support band for AAPL is crucial. So far, I’m not seeing any bounces. And from
my perceptions of the intraday (5-minute), it doesn’t look like we’re seeing
any strong bounces. However, AAPL is not breaking down just yet, so keep
watching out. I tweeted this morning, around 20 minutes after the open, that I
bought AAPL puts and it’s been working well. Holding these overnight will not
be within my risk tolerance; this stock can still bounce or dip down, brutally
fast might I add. Therefore, I will only be trading AAPL intraday via options.
My outlook for AAPL? Still bearish because it filled a huge
ER gap. 555 is highly likely.
NFLX, not looking good either
In addition to AAPL puts, I also purchased NFLX puts at the
same time, just briefly before the HOD. I will hold these options overnight and
for a while because this stock is just looking to go lower. It’s not good to
see a stock gap down at the open, rally, erase all it’s gains within the first
two hours. It usually means that buyers and stepping in at the gap down with a
shred of optimism, and then the sellers take over once more.
Again, I maintain my earlier prediction of a 60-63 price
target for NFLX. If not lower.
Market
This market is looking weak. With more euro troubles from
Greece, election drama from France and Spain being downgraded, our economy is
on the verge of becoming volatile again. The VIX is picking up a little bit, so we’re
definitely going to see volatility, but definitely not as much as late last
year.
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