If you had the stomach to get short AAPL at the top of the channel today within an hour you were in the money by $4.40 and hopefully out before the close.
AAPL apparently reported strong earnings after the close and is now trading 125.10 or back to just below the channel. The same trade could be put on again, but the stop better be VERY tight.
Here's a fairly thorough article on AAPL earnings and an explaination of the guidance. Definitely worth the read for you valuation types:
http://www.istockanalyst.com/article/viewarticlepaged/articleid/3204080/pageid/1
The interesting thing is that even this good news from AAPL was not enough to raise the futures.
Thursday the battle will be hinging on unemployment numbers out at 8:30 est. A number above 700,000 could be in order as this is the first full week reported after the Easter Holiday. If that's the case lookout below. Also tomorrow will be home sales data at 10am another market mover and possibly more fuel to the selloff if Unemployment sends it down at the open.
Bloomberg.com:
"Initial jobless claims for the latest week fell to a much lower-than-expected level of 610,000, down 53,000 from the 663,000 in the prior week. But the latest data are for the holiday shortened Easter/Passover week of April 11. The Labor Department warned that the results were heavily affected by adjustments. The four-week average came in at 651,000. But the really negative news was that continuing claims for the April 4 week jumped again to another historical record, up 172,000 to above 6 million at 6.02 million. This coming week, we may see a jump in initial claims, coming off the holiday week before."
Bottom-line - this is a great tool for setting entry/exit points and stops. Toss in the Fibonacci levels for good measure and make a plan...
