Apple (AAPL) Showing First Sign of Commitment to Upside Since Earnings

Apple’s (NASDAQ:AAPL) fall from grace has been precipitous and infamous in trading circles over the past few months, but could that narrative finally be starting to change? AAPL has been dead weight since topping out in late September above $700, shedding nearly 40% of its value in that time. The company proved the naysayers right in its January 23rd earnings report. Declining margins and sales growth have spooked investors that piled into AAPL thinking the company could never do wrong.

For traders like me who have watched AAPL everyday for the past five-plus years, it’s hard to condition ourselves to ignore the symbol and focus on the price action. I have tried previously to be early to the AAPL bounce, and each time I have been left frustrated. That is until today.

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AAPL today for the first time is showing some commitment to a bounce. The stock opened slightly higher with the market this morning, and chopped around for the first half our of the session before getting in gear to the upside. The stock has seen a steady grind higher the whole day, the first time we have seen this type of action since earnings. I believe this could mark a short-term bottom in the stock, but will take it day-by-day until the stock re-proves itself.

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The line in the sand for AAPL that I will be watching on this trade is $452. If it violates that level then it is once again showing no commitment to the upside. I believe we could see a move to the beginning of the gap at $465, at which point I will reevaluate my size and expectations for the trade based on speed and composure.

AAPL finished the day up 3.5%.

Disclosure: Scott Redler is long AAPL

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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