How I played $AAPL -Apple Stock on the morning gap down & updated Jan. 24/2011


Wanted to do an update on $AAPL with today's chart as of Jan.24, 2011 

There are a lot of people interested in $AAPL so thought to share some of the strategies i've been using on this stock as well as key levels i've been watching & looking for from here:

Make sure you double click the charts below or right click & reopen them in a new window or tab.



I had locked up $3,385 last week on that bounce on Tuesday 

I re-bought into a/h that Tuesday night on the earnings dip with the strategy to sell into any $350 pop the following day.

Was able to re-sell the next morning for another $541 profit on Wed Jan 19th for small profit into $348.80 & 348.97 (& held 100 shares)

Re-bought more again on Wed./Thurs 19th & 20th Dips ( did not add on Friday or today as will only add to longer term swing batches from key lower levels )

Entries/exits & charts are posted in real time in our live chatroom 

Right now sitting on 2 out of 4 positions profitable but not bad since locked up almost $4k ($3,926) easily on it last week.

The reason I'm waiting to add on $AAPL is something that we spoke about in chatroom last week and again today – Steve Jobs does have a  chance that  he may not come back to Apple. Right now there is a likehood that if he gets better that its more of a timing issue but if he gets worse or doesn't make it then there is no "when will Jobs be back to Apple?" or how sick is Steve Jobs? That unfortunately for his family and those that love Apple products would have another big drop on the stock which I would again see as a buying opportunity as it was last week but I don't want all my swing shares to be at higher levels. 

From this article we read today people are keeping their fingers crossed and I'm sure many wish Steve Jobs & his family a great recovery

Some Possible Insight Into Steve Jobs' Condition From Someone Who Probably Knows Some Things
Read more:

Only playing $AAPL stock a bit more cautious from  here but any further drop I'd consider a buying opportunity. Drops towards $320-$300 would add some bigger key longer term swing positions to try & play to highs & or $400+,  Would re-evaluate on news/ market conditions then too but so far pretty happy with how I've traded $AAPL recently . Further down you can read how I was trading it that day of the gap down Tuesday. January 18th 

Hope these notes are helpful 

Happy Trading 



Tuesday January 18th – Day of Steve Jobs gap down $AAPL drop and pop ( bounce) strategies

How I played $AAPL -Apple Stock today on the morning gap down

Thought to share some of my strategies today for playing that AAPL bounce this morning – was really one of the easier trades so far this year

We've talked at length in the chatroom regarding how best to play $AAPL ( Apple stock) . We agreed that with the recent strength Apple was having , along with blowout quarters that 2 things could drop the stock back to levels where we'd want to rebuy the dips.

1) A Stock Market pullback/correction 

2) If Steve Jobs got sick again and had to leave Apple – 

I wish Mr. Jobs a speedy recovery but saw the drop this morning as a potential long play both as a swing & or intra-day play

Some of us following the news saw that Apple was already trading down overseas and I felt it could provide for a good bounce off any sudden sell off today.

Biggest question you should have is where do you buy a stock that is gapping down and selling off on uncertainty and fear? 

Here's where I start—- 

Here is the 1st chart I posted in the chatroom & on the private twitter feed

( Reminder click on the charts twice to see them full screen & feel free to print them for future reference)

HINT:: You can also right click the charts & open them in a new Tab/Page if you want to go back & forth to blog & charts

So now I have some key levels to watch.

I was watching that $331 area which was the 20day sma ( simple moving average )

So answer to where to buy a stock gapping down — is watch key level & whole #'s in this case that $331 area

So just after 9amEST bought 200 AAPL  @ $331.65 just over that 20day area and sold just past 9:50amEST into $335.77 for $824 profit or 1.24% ( could have had over $1k but sold as dropping back)  – Successful trade #1 


Chart # 2  i posted in chat will give you a better picture of what I was looking for into the open on AAPL & the fib level bounces that were holding well.


As I was finishing this chart I missed the initial drop into open on $AAPL but decided to hold since was more interested in a buying opportunity down to $300 as a longer term trade.


 Notice the perfect tweezer bottoms after the open on the 1minute chart below


You had to be pretty quick to catch this bounce but I didn't mind that I missed that move. As a trader you can't catch every move. I was happy though to see AAPL recovering off the opening lows so quickly.

My 2nd buy I went a bit smaller 1/2 ( 100 shares @ $334.12 just prior to the 38.2% fib bounce which you can see clearly below

The buy was just prior to 10amEST  and I was willing to add more into the fibonnaci levels .


sold those 100 shares @ 338.76 for another $464 profit or 1.39% – So not bad prior to lunch had picked up $1,288 profit on the morning AAPL bounce

I did buy more shares 300 @ 334.51 which I was I planning to hold longer term .to $400+ but  once AAPL was over $341 decided to sell them too

 for another $2,097 profit so in total took off $3,385 profit on Aapple ( $AAPL)

So was pretty happy not owning any AAPL going into the earnings announcement –Good Move or Bad?

Although I did not mind the 1st 2 trades today on AAPL I could have been more aggressive with holding the 300 shares longer  – cost me at least $3k-$4k , I would not have got to that high of $357 in after hours but I could have sold pretty easily into $350+ 

I had decided that if I missed a pop on the earnings announcement that I'd look for a dip for a rebuy so to take the easy money earlier on AAPL I didn't regret it at all. Its part of the strategy that has kept me profitable for so many years. As you can see today I did well on AAPL but I didn't catch the bottom , I didn't catch the top but bought into key levels of support & sold into key levels of resistance . Very easy strategy that works well but as you can see I also use fibonnaci retracements, key moving averages and candlesticks charts. I don't just rely on one technical indicator since none of them work 100% of the time but a combination of them works well for me. 


I did buy AAPL again after hours on the dip  @ $347.39 and @ $344.96 and if works out plan to sell these batches if we can hit $350+ in the morning.

Here is an afterhours chart & how I came up with that $350+ target sell – News or Upgrades can change or trump the charts but I like to have with a game plan.



Now what if AAPL gaps down for some reason ? then I'll look to key #'s again & I left plenty of room to add more on any dips as a longer term swing.

If I had to stop out on the a/h batches that would not be a bad thing either since I know I would look to replay AAPL again and I already locked up some easy money today.


If you want to see how other traders in our chatroom played AAPL today – look to @mmassassin blog He has been creative with AAPL recently and played the weekly options many times. 


If you’d like to join our chatroom or get our private feed with my live charts / live entries/exits such as the ones above send an email to and ask for a 2 week Free trial


Hope that analysis makes sense for you & gives you more of a sense of how detailed I analyze the charts on my trades.


Congrats to those that made money on AAPL today , good luck with it tomorrow & for 2011


Happy Trading , 




Posted in General Trading