China easing triggered a rally in the market today. I think AAPL probably wants $300 so I might be a little early here but I went out to the 24th of January just in case I am. This would be the other half of my position alerted earlier in the week, which I’m monitoring closely and likely to give up on early next week if AAPL doesn’t start to come in.
Obviously overbought but AAPL can sustain overbought for months on end so that’s not my basis. Sticking to my original thesis on profit taking in January, I suspect AAPL is vulnerable to sharp drop in the coming weeks. And with the IWM selling today’s gap hard, I’m thinking the pullback might be as soon as early next week.
Small caps are usually the first to rollover after a big market uptrend and this action in the IWM could be a good predictor that’s coming.