Market Sell-off Continued While AAPL Stabilized along with FDX Bounce

“Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.” -Gerald Loeb

The U.S. market continued sell-off Wednesday since last Friday’s bearish reversal session on NFP report. The S&P 500 and Nasdaq have both extended their losing streak for four days in-a-row, while the Dow has stretched its losing streak to three straight sessions. SPX at 1432.56 now is near its 50-day moving average.

Earning warnings or poor guidance from various companies keep putting pressure on many stocks and the broad market, such as AA, CMI, CVX, EW, TSO, ZNGA, etc.  October usually is a tricky month, especially after the four-month rally since June 4th bottom. Correction is usually expected.

To me, AAPL’s multi-day sell-off since its bearish reversal action on  9-21 has been foretelling what was going to happen to the broad market. However, as of yesterday, AAPL seems to have had a capitulation sell off on massive volume after hitting its intraday low of $623.54 or 11.55% off its year high at $705.  I, along with many traders, got lucky to have participated in trading such a risk-and-reward oversold bounce yesterday. Due to the weakness of broad market, I got out of my AAPL long position.

GOOG also has been sold off nearly 4%  from its year high 775 hit last Friday after a SELL signal mentioned in my last post. MA, another strong leader, reversed down as well after it hit all time high last Friday.

But, today I saw something interesting happened!

FDX, an economy telling stock, bounced up $4.41 to 89.99 or up 5.15% despite its warning many days ago; AAPL stabilized after the brutal sell off for over two weeks; COST, WMT, GNC, YUM, WMT all acted strongly, near or hit their year highs. Financial leaders GS and JPM are still holding up near recent highs.  All these signs mentioned seem like silver linings  to me. Pushing a SHORT button can be really dangerous here. Additionally, the oscillator is now at minus 47, near an oversold territory.

During the tricky time like this, it’s smart to sit tight with capital available for proper time to get in while watching how market price action will be developed. Always be observant, flexible, and objective!

Here is the AAPL intraday chart with my notes:

Thanks for viewing, and trade safe and well!

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About Angela Zhou @z8angela on Twitter

I am a full-time swing/day trader trading stocks & options. I got into stock trading/investing since the internet bubble in 1998. I am optimistic in life and objective in trading. The purpose of this blog site is for me to share my trading experience and market view with others. I may write something about life experience and living, too. My motto is: A Great Mind Becomes a Great Fortune. I love people and life, and I appreciate beauty in everything. Thank you for viewing!
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4 Responses to Market Sell-off Continued While AAPL Stabilized along with FDX Bounce

  1. markalan says:

    GREAT overview – as always! Question: Which “oscillator’ are you referring to in your report above? Is it the McClellan Oscillator? thank you

  2. James Steere says:

    very much appreciate your insights … by many methods I see a floor at 618 area … I am going to hold 2000 sh’s through earnings and into Jan. what is your outlook? btw … excellent excellent overviews … it’s remarkable but I went in about where you did twice today but no stops .. building position. all the best to you, sincerely Jim Steere

  3. Ryan says:

    I’m wondering if you can help with some ideas on how you execute your ideas intraday. I’ve been told that a good way to execute is to buy 50% at the level, let it wiggle around, if its working then add the remaining 50%. How do you execute normally? Are you all in all out, or more of a scaling in technique?

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