The AAPL scalp trade is on. This is from my post on Sunday night.
AAPL is running up to its all time high at $200. It is sitting at $188 right before earnings tomorrow. This one could be good for a scalp if it runs up 6-7% on a good earnings announcement. That would put the stock right at $200-201. I’d be willing to set a tight stop at those level shorting it for a scalp. The bet would be that it won’t be able to take out the all time high on the first try.
I just shorted it at $202.50 in after hours. As expected, on good earnings it ran right up to its all time high.
Could it move higher in the morning? Anything is possible. But, the QQQQs are also bumping up against resistance at $43.50. QQQQs are trading at $43.56 in after hours trading right now. Right at resistance.
So AAPL has already showed us its cards and for now the all time high is containing it. Tomorrow we have building permits, housing starts and a ton of earnings releases. These could all be catalysts that take AAPL down at least a few points lower for a scalp. If economic data and earnings are good tomorrow, AAPL may be topped out for a couple of days until the buyers gather enough momentum to take out the all time high. The fact that the AAPL resistance aligns with the resistance on the QQQQs makes this trade even more favorable.
Worst case scenario is that a brokerage house comes out with a $300 target on AAPL and upgrades it in the morning. That could be a catalyst to take it immediately above $202 before the trade can be covered. But, also possible is an analyst sees it at the all time high and decides to downgrade it based on valuation. So this can work both ways.
Anyway, I like the setup and I’m in. I’m using a stop in the $205 area but I might mess with it depending on how it opens in pre-market trading tomorrow.
