Lots of hand wringing with the FAANG stocks and other tech market darlings. I continue to own AAPL Jan $160 calls and short AAPL Jan $160 puts as I expect AAPL to make a nice tradeable bottom. I added to both my positions today and I am full-up with the calls but will add to my short put positions into year-end if we can get more weakness next week. Here are my charts …
AAPL – 195 Minute Chart
I still think we have already or are in the process of making a final 3rd-wave low in AAPL. I doubt we make higher highs, and I think that the SLOT resistance will stop any bounce over the next couple of months.
I see lots of positive divergence in price momentum (panel #2), MA Spread (panel #3), DI+ (panel #4) and weakness in the trend strength histogram (panel #5).
AAPL – 30 Minute Chart
To me, the $163.33 low in AAPL was made with an unclear wave structure … that is why I am not definitive in my conclusion that a 3rd wave low has already been made. It could have been, but I do not see confirmation via an obvious completed wave count.
I extended the last bounce off of that $163.33 down to a new minor low … the 1.272x extension target shows us a possible price of $160.95.
Cheers … Leaf_West