Originally Posted June 7, 2009
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Wednesday, June 10, 2009
AAPL 10 Minute Chart-June 5, 2009
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I have included a 10 minute chart which better shows the advance towards the time and price confluence. In retrospect it would of been a great trade to buy Apple at the open Monday following my recommendation, then sell the position June 4 or 5. Since we earlier established that time and price confluence is used in addition to an already existing trading program, this chart provides necessary information about execution. From a day-traders perspective how valuable was the analysis I provided? You would have avoided short-selling and looked for long momentum plays. Opening orders obviously provided the best opportunity, but again that is retrospect. Also, you would be looking to possibly get short at the recommended sell price. This is because it is expected to be a "reaction level". This is better judged if you have experience with level 2, NYSE specialist, or Nasdaq level 2 automated programs. From a position trade, there was much more opportunity. You could have held the equity throughout the week with an intention to sell based on date or price. Or you could have bought out of the money (or ITM) June call options @ or above the $140 (or higher based on buying power) level. Depending upon the price of delta, OTM or ITM options will provide different returns especially since you are buying a contract within the expiration month.
Pay close attention to the intraday price reaction to the red and green trendlines. Keep in mind that these are the same trendlines that are drawn on the daily charts.
Pay close attention to the intraday price reaction to the red and green trendlines. Keep in mind that these are the same trendlines that are drawn on the daily charts.
AAPL Daily Chart Update
AAPL Daily Chart Update June 5, 2009
The 145.97 target was met June 5th. This has been a successful example of time and price confluence which I originally learned from a book written by Constance Brown. This book is titled "Technical Analysis for the Trading Professional". The second factor included in the analysis is the Elliott Wave formation. If the count and Fibonacci projection are actually "reactive" then we should see progressively lower price action for the week ahead.
INDU Intraday Chart Update- 15 Min
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Tuesday June 2 was the first day that price tested the projected resistance level. This is a 15 minute interval of the INDU which better shows the price action. The pullback following the test was good for about 170 points. In the days following, price rebounded back to the resistance level. For some reason, the intraday closing price at the end of Friday shows a slightly different price than that of the daily charts.
INDU Daily Target Update
June 7, 2009 Update- Daily Chart
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It appears as though the resistance level for the Dow has been confirmed. The weekly closing price was the lower resistance target of 8763.
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