I am not sure how long we can keep pushing at the upper resistance level like this; I think we are going to start winding down soon. A healthy pull back would be nice or some nice consolidation for the next week or so would be too. If we do start to consolidate or pull back hard, I really like the AAPL chart here as a short — especially since it has a high beta. I was going to short today but my quant analyst friend said not to; surprisingly, the analyst was wrong — note to self, don’t listen to an analyst about trading ideas ever again b/c it cost me 3 points!
I thought it would have been a sexy area to short against the 623 level, but when my friend said not to, so I didn’t and watched it trickle down like a loser I was — damn it. The RSI from last night looked like the top, so that was why I was thinking about a starter position today; anyway, it is still on my watchlist for a short, and I am thinking about shorting it against the 623 or 624 using the 625-626 level as a stop. I believe this is a low risk, high reward ratio trade; I can risk 1 to 2 points for a potential of 50 points! Of course that is very optimistic having the target at 570, but hey, it is possible.
Targets would be 600, 590, 570.
Another one I am looking at is a commodity, corn.
I am sure you have heard or read about the agricultural problem we are facing with a steady, or rather exponentially increasing corn and soybean prices. Well, apparently there could be cool weather and rain coming in next week and if CORN can crack that 50.70 level, with strong volume, I might go in for a short against a nice round number of 50.50 or possibly an even 50 flat for further confirmation with a stop at breakeven. I think if corn dips, it could be a hard drop back to lower levels.
Targets would be 48, 45, 43 or even lower; I think this is a great R/R trade also, but it really depends on the weather next week.
Another great one would be XOM; with crude prices going the wild like the wild wild west, this could keep pushing higher.
Be that as it may, I don’t give a shit about that, and I just care about the $88 level; I think one could use that significant level to long or short this one.
Looking at that volume spike when it brokeout today; that proves the $88 is a significant level, and if it ever breaks down, aw man, this is going to be a fun short too.