Apple (AAPL) Now Just a Short-Term Vehicle

Apple (NASDAQ:AAPL) is a stock I like to trade frequently because it often sets up well technically. AAPL saw a harsh down-move after topping out above $700 in September, and is now a bit broken technically. Whereas I usually trade the stock with a little bit of a bullish bias, right now I am very neutral and nimble.

AAPL relieved a lot of pressure with the potent reversal on November 16th and was able to bounce back up to near its 200-day moving average. However, buyers did not step in aggressively at those higher levels and AAPL never reclaimed the 200-day MA, a bearish sign. After putting in a higher low on December 6th, the stock has been trying to bounce but has not been all that impressive.

For short-term bullish composure to remain intact AAPL needs to hold the $537 area, which is yesterday’s low. The short-term reference point of resistance is yesterday’s high, and then Friday’s high will be the level to watch. AAPL is often a great swing trading vehicle, but right now I am treating it as a cash-flow trading vehicle only. The stock has a lot to prove after the recent price action.

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Here is a shorter-term look at the AAPL price action yesterday, which worked well according to the video I did yesterday morning.

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Disclosure: Scott Redler is long AAPL, XHB, GCI, BAC, MGM, FB, LULU, GS, JPM, INTC. Short SPY.

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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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