Slide Rule,
There is a chance to play such tactics on Apple, however, the trend
still follows overall market performance. We all have known iMac
sales are going to be amazingly well but don't know how good it is.
Some predicted 300,000 for this quarter, while others said 400,000, or
even 500,000 pots. In general, the sales are unbelievable and some
good news may have factored in the price partially. From last week's
Apple performance, it's clear that Apple stands very firm even the
overall market slided 300 points in one day. For day traders, it's
rare opportunity for them to get profits due to its wide range swing.
I think you could bet that Apple will advance when the market recovers
some of its loss last week.
If you want to play such tactics, then probably you are waiting for
news of preorder amount from officials, which is likely to happen
on Saturday (August 15th) in order to boost further sales.
Well, I still believe playing short term is risky, but, Apple actually
already provides excellent conditions for day traders to stick around
since its trend is up and the earning prospects are significantly
improved. If you get stuck at $40, you will get it back when Q4
results are announced in the mid of October. Therefore, the
probability of losing your shirt appears pretty slim.
Phil
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