Trading AAPL

'Type 1 - Closing' system signal was generated for AAPL on 3/22, as per the 'red arrow' indication and reference price 599.28. The notation 'SE-C' indicates a system short entry at the 'close' of this day. 

To familiarize with the chart-anatomy; you can visualize the 15min intraday chart above with important overlays. First, you can see the 'blue' horizontal line tracking across the screen: This is the Weekly upper channel boundary or Weekly resistance for AAPL at 599.95. So, from the intermediate trend perspective, longer term investors would benefit from observing how AAPL behaves within its existing weekly channel, which also extends down to the Lower Boundary at 542. With the Weekly channel (blue line - 599-542) we have established the intermediate trend or time frame. 

Within the chart above, we can also visualize the structural overlay that tracks price-action. This is the 3-day structure or 'pivot' for this market. This structural area is defined by regression and references the mean price and first standard deviation on a 3 day basis. This structure defines the Short Term bias of the market. When AAPL price bars trade 'above' this regression, the market has a long bias and when the price bars trade 'below' regression, we have a short bias. 

The system-generated signal on 3/22 implies 'caution' to the short-term long trader in this market. For which there are 3 positional approaches: 

1.Begin scaling out of long position.

2.Complete Exit from long.

3.Do not get short.

Longer term investor do nothing at this signal reference. Their positional references come into effect at violation of the weekly (intermediate) boundary at 542 reference level. This would imply that AAPL is changing trend to Short on the intermediate time frame or weekly time frame.

Given the directional strength in AAPL shares across all time-frames, the 3/22 'Type-1 closing signal' does not imply a short trade set-up quite yet for the active trader. To short this market, I would need to see my 'Type-2' system signal, which is an intraday momentum signal (reversal signal) implying aggressive long inventory liquidation. The second tactical short positional approach in AAPL would begin at the close today because we would have 3 consecutive trading days closing below the 3-day regression structure or below the short term pivot structure. This would imply the bias is shifting away from the longs. 

For those of us accumulating a short in AAPL, use a stop at the 603 level. 

If AAPL closes back 'above' the 603 level, and above the 3 day regression, the short term trader would start getting long AAPL again. For aggressive short-term traders, any 'Type-2' intraday momentum reversal signal back to upside could imply the use of outright calls or a vertical call spread.