There was a decently significant milestone AAPL was on the verge of reaching recently. Consider it reached. Any guesses as to what it is? Answer later or once a commenter gets it right.
EDIT: To be clearer, it relates to price action over the past year.
SECOND EDIT: Hopefully there’ll be more comments/guesses next time! The answer was – AAPL had an up move exceeding any previous countertrend move. Bonus points for saying that this move occurred while breaking out from downtrend.
Comments are always welcome – e-mails aren’t required!
What a day. AAPL was actually already doing quite nicely, and seemed to have more than enough momentum to close around 475, and safely over the non-div-adjusted SMA-200 at around 470. Considering that’s the “final” moving average hurdle on the daily timeframe, that would’ve been a big deal on its own.
Then in the afternoon trading session, a certain corporate raider/multibillionaire investor issues a couple of tweets, and this happens:
Now, being students of “The Parable of Lucy and the Football”, those of us who believe in the strangely consistent power of option pinning (be it pain range, max pain, what have you) aren’t expecting AAPL to easily overcome that mountain of call open interest at 470 on Friday.
But keeping things in perspective, AAPL hanging around 470 wouldn’t be a bad problem to have by the end of the week. After all, last Friday left AAPL bulls (such as myself) wondering if the descending channel/bull flag hypothesis remained halfway viable, as AAPL spent four consecutive down days retreating from its trend high of almost 472. As you know, Monday was quite a different story: