Tuesday, August 4, 2009

AAPL Day Trade

After making a little money on my HD trade, today I want to try short term day trade for AAPL (Apple). What I will do today is enter the trade when AAPL reaches a Fibonacci retracement from yesterdays price action. Upon finding support, I will buy a couple August 175 calls. I'm looking for a profit of 15-20%, then I'm out. These are the retracement levels for yesterdays price action:



I'm sure that APPL would keep going up past where I sell it, however as I have posted in the past, the market is over due for a correction and is coming up on very key resistance levels. Any over bought indications around this time would leave me very nervous about being long while the market was closed over night.

If, however, APPL retreats and finds no support, and breaks its previous days low, I will call off my trade and re-evaluate tomorrow.

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