SPY Bear Flag -- Caution

This market could go much weaker with SPY forming a bearish flag formation.  Breakdown could see 106.74, the S3 @ 102.20.  Trade with caution and trade quickly. RSI and STO are also declining.

$AAPL Bull Flag

We got a bull flag on the 1 minute and 5 minute chart setting up.

This is bullish look for BO ouf 1 minute to test resistance of the 5 minute.  Next resistance after is overhead downtrend line.

RECAP: Cautionary Note About Today's Market Rally

While the market finished up today 147 points many major players either sat this rally out, or traded down.  After Apple's GAP UP it steadily sold off finishing the day -1%.  Amazon was also weak today finishing the day down nearly -2.5%.  Chipotle steadily sold off throughout the day and closed at -2.7%.  FAZ (Direxion Financial Bear 3x Shares) GAPED DOWN at the open nearly $5 and had a huge late day surge at 2:30pm @ 56 and closing the day @ 60.37 at HOD.  XLF the SPDR FINANCIAL ETF did the exactl opposite (as its supposed to do) selling off hard into the close 2%. SPX finished the day @ 1175 up 1%, but sold off hard into the close starting at around 2:30pm dropping nearly 20 points, or about 2%.

My Take on all this is too be cautious and nimble with your trades going forward these next few days.  I am skeptical of markets where the leaders lag.  This was an unusual +150 close and will treat it as such.

AAPL Earnings Swing Play

This Daily chart of $AAPL shows a consolidation pattern forming.  A breakout to the upside I believe ill be coming in the next few days on IPhone announcement, barring any software or technical errors.  At which point I Believe $AAPL will trade within the boxes in the chart until the upcoming earnings call.  Which should move the stock price up in anticipation.  $AAPL will become a long swing when it breaks out above 422.85 (previous high).

My Trading Plan:  will go long on consolidation BO, bc I believe it will re-test highs : target 420.  Then it should consolidate within the green box before taking out previous highs in earnings move.

I am also LONG Oct. 22, 2011 395 @ 17.70 for earnings push.  Might let these expire, or cash out early.

AAPL Intraday Chart

AAPL has been trading predictably over the last few hours holding previous Supp./Rest. levels.

My next long entry is a Limit Buy Order @ 406.01 looking for quick move for +.80

Following the Right People

Following the right people, both on twitter and stocktwits is very important.  They can provide excellent trade ideas, watch lists, and general market information and news.  More so, they can be invaluable teachers.

Here is a list in no particular order of must follows (IMO):

JonathanFlorida
Gtotoy
Crosshairtrader
alphatrends
PipCzar
CarsonDahlberg
TodayTrader
UpsideTrader
AllStarCharts
DayTrend
aztecs99
downtowntrader
harmongreg
traderstewie
tickerville
apextrader
tradefast
biggercapital
traderflorida
1vestor
chartly
apextrader

These people provide an excellent source of information, news, set-ups, and alerts.

Can't go wrong with all the knowledge on that list.

Trade'Em Well

Verified Apple ( $AAPL ) Trades Reviewed

Used the daily chart to see that $AAPL was coming down to its 20 day moving average 38.2 retrace, so I played the bounce or fail.  It is important to also note, that Apple tanked early today some crap report by JP Morgan that Apple was slowing down production in China.  Some things of note about this: 1. Analyst said he expected no impact on sales 2. The fact that Apple had just announced new plant in Brazil 3.The fact that Apple had UPPED its production in order to meet upcoming Holiday demand.  This is an example of the Big Boys manipulating the stock in order for them to buy cheaper.  LESSON: AVOID THE NOISE!

Click Chart to Expand

On the 5 minute chart I highlight my thoughts throughout the day as I traded $AAPL, netting nice gains along the way, securing profits, and swinging a piece.

Click Chart to Expand

I am also Long $AAPL via Oct 22 395 @ 17.70 Calls.  I sold 3/4 of these today that I picked up near the bottom and let them go for a small gain @ 18.10, but I will swing 5 Calls into earnings with the upcoming Presser on Oct. 4 were one would assume $AAPL is unveiling its new Iphones (yes plural IPhone 4s and IPhone 5 i believe), so I think this stock can really run and in my opinion challenge its previous Highs.

Click to Expand

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DISCLAIMER

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF E*TRADE, STOCKCHARTS.COM, CHART.LY, & FREESTOCKCHARTS.COM.