$AAPL SENTIMENT WAS THE TELL

I’m a market history guy, and this is quite a good story to tell. If you can recall back into 2013, you’ll remember $AAPL trading in a similar range YTD. It was a $400 stock, but the price range, under performance, and sentiment were all the same.

Here’s a look at the two charts:

I spent a lot of time covering the sentiment in $AAPL. There was a great dialogue about it back then, as well as an earnings trade that quarter when the stock broke out and never looked back.

I highlighted the weekly bar above in the 2013 chart, which serves as a good analog to current price action.

Here’s a weekly chart of $AAPL in its current set-up.

The best tell from all this was the options. In both scenarios, this was the cheapest the options have been heading into earnings. Implied volatility hasn’t been this low for $AAPL since that 2013 earnings release.

To recall how bad sentiment was, it was a hot topic here at iBC. It was hated on the same way it has been now. Bearish opinions outweighed at least 5:1.

Should be a runner at the open when people realize they don’t own enough. I loaded up with some calls yesterday a few hours after the downgrade.

OA

If you enjoy the content at iBankCoin, please follow us on Twitter