Monday, November 01, 2010
Bookkeeping: Restarting Apple (AAPL) Near Support
By Trader Mark
As with almost all first days of the month (and Mondays) the market is up strongly to start the day - you can almost set the watch to it. At least today there is some economic data to support it, unlike most occurrences.
I continue to try to force feed myself to buy "something" since the market "can only go up". Looking at the market, if there is a continued move up, one would assume Apple (AAPL) would help to lead the charge or put another way, it would be difficult to see the market continuing to charge without the name. Being amongst the most liquid names out there, I will start a 4.1% exposure as the stock sits right above key support. The stock has bounced off the $300 level three days in a row, which is not only a 'big round number' but also the 20 day moving average.
The advantage is allowing for a 2% leeway as a stop loss, one can exit if the market ever decides it can sell off again. I believe NASDAQ is now up 9 sessions in a row.... it is quite egregious.
As with almost all first days of the month (and Mondays) the market is up strongly to start the day - you can almost set the watch to it. At least today there is some economic data to support it, unlike most occurrences.
I continue to try to force feed myself to buy "something" since the market "can only go up". Looking at the market, if there is a continued move up, one would assume Apple (AAPL) would help to lead the charge or put another way, it would be difficult to see the market continuing to charge without the name. Being amongst the most liquid names out there, I will start a 4.1% exposure as the stock sits right above key support. The stock has bounced off the $300 level three days in a row, which is not only a 'big round number' but also the 20 day moving average.
The advantage is allowing for a 2% leeway as a stop loss, one can exit if the market ever decides it can sell off again. I believe NASDAQ is now up 9 sessions in a row.... it is quite egregious.
