Bears Take Bite Out of Apple (AAPL)

9:00am (EST)

Tech could be in trouble today so let’s go over Tuesday’s numbers real quick.

The Dow dropped 104 points, or 0.8%, to finish at 12,617. The blue-chips saw a little green at the open and traded up to 12,730 but it was all downhill from there as they hit a low of 12,521 shortly after our midday update. The next level of support is in the 12,400-12,350 area once 12,600 falls with resistance becoming stronger at 12,800.

The S&P declined 12 points, or 0.9%, to end at 1,338. The index traded to 1,351 at the open but traded down to 1,329 before slightly rebounding in the last hour of trading. The next level the bears will target will be 1,325 and then 1,300. After failing to hold 1,350 as support it will now represent short-term resistance.

The Nasdaq got punished for 27 points, or 0.9%, to settle at 2,862. Tech traded up to 2,896 but resistance at 2,900 easily held. The bears were able to push 2,847 before the close and would have liked to have seen a finish below 2,850. This level should easily fall once Apple (AAPL, $600.92, down $2.91) opens for trading and the Nasdaq could challenge 2,800 if Wall Street throws the baby out with the bathwater.

****************************

If you are not a subscriber but would like to read more please click here. We have a couple of new charts we are showing on twopossible new trade recommendations.

We are one of the fastest growing stock options trading advisors on the internet and offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Together, we are 105-31 for 2012 which is a 78% win rate on all of our trades.

Comments are closed.

CFTC Disclosure:

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Blog

Bears Take Bite Out of Apple (AAPL)

CFTC Disclosure: