What should we expect at the Monday open for AAPL?

We will have to wait for Tommo’s analysis of this weeks charts but it wouldn’t surprise me any if we tested 168-170 level before we test the 192 old high again .

The newsflow is less positive, so down…

What should we expect at the Monday open for AAPL?

90,000 call contracts, out of the money calls, were traded Friday for December expiration. That represents 9 million shares. With 18 days until expiration someone is looking for an upside move.

[quote author=“danthemason”]

What should we expect at the Monday open for AAPL?

90,000 call contracts, out of the money calls, were traded Friday for December expiration. That represents 9 million shares. With 18 days until expiration someone is looking for an upside move.

Or someone sold his 90,000 calls for profit, shifting his potential problem to others anticiapting a drop like every year in december.

Or someone sold his 90,000 calls for profit, shifting his potential problem to others anticiapting a drop like every year in december.

I yield to your cautious approach. I’ve been guilty of lately of having some of that"irrational exuberance”. It’s expensive treatment, that.

[quote author=“danthemason”]

Or someone sold his 90,000 calls for profit, shifting his potential problem to others anticiapting a drop like every year in december.

I yield to your cautious approach. I’ve been guilty of lately of having some of that"irrational exuberance”. It’s expensive treatment, that.

This brings me to one of these questions I have for a long time and do not have the guts to ask (for being an ignorant):

Everytime somone sells, there must be someone who buys. So why do we call some business a SELL and others a BUY? 

[quote author=“ghobi”]
Everytime somone sells, there must be someone who buys. So why do we call some business a SELL and others a BUY? 

Not sure if I understand your question. If a stock goes up that means that there are more buyers (or at least traders willing to buy) that sellers, and vice-versa. This can be expressed as that traders are Buying or Selling the stock. Not that there is not a buyer for each seller, but there can be more traders willing to buy (or sell) at a specific price, thus causing the stock moving in the direction of the majority.

[quote author=“carbonat”][quote author=“ghobi”]
Everytime somone sells, there must be someone who buys. So why do we call some business a SELL and others a BUY? 

...thus causing the stock moving in the direction of the majority.

Carbonat - you are right. The number of buyers and sellers define the direction of the market.

My question was in respect to danthemason’s post: How do we define an operation of 90.000 calls (which he mentioned) as selling for “cautiousness” and not as buying because someone is “looking for an upside move”?

I understand that when AAPL reached its all time high there were people selling for taking profit. But at the same time someone had to buy. And the buyers obviously do buy because they expect profit of rising market.

This is sure not the place for all my worries but for the moment there is little going on ...

[quote author=“ghobi”]

My question was in respect to danthemason’s post: How do we define an operation of 90.000 calls (which he mentioned) as selling for “cautiousness” and not as buying because someone is “looking for an upside move”?

Well, obviously only one of the sides will be right so I suppose that it being a selling for cautiousness or a buying for bullishness depends on where the smartest side is. It is also true that what must match is the total shares (or options) traded, not the number of buyers or sellers, so for example if someone places a big order to sell, this can be matched by lots of smaller orders to buy. Since the smart money comes and goes from the market in bigger lots, it can be assumed that it is the majority of traders (the smallest ones) who are paying for the gains of the less numbered smart traders.

[quote author=“ghobi”][quote author=“danthemason”]

Or someone sold his 90,000 calls for profit, shifting his potential problem to others anticiapting a drop like every year in december.

I yield to your cautious approach. I’ve been guilty of lately of having some of that"irrational exuberance”. It’s expensive treatment, that.

This brings me to one of these questions I have for a long time and do not have the guts to ask (for being an ignorant):

Everytime somone sells, there must be someone who buys. So why do we call some business a SELL and others a BUY? 

The more ppl want to sell => the lower the price goes => so that’s sell.

The more ppl want to buy, the higher the price, so that we call a buy.

So if we say everyone is selling => price is going down; everyone is buyng => prices will go up.

or at lest that’s how I use it

FYI:

07:55 EDT RIMM
theflyonthewall.com:  Research in Motion-RIMM: Downgrade Reaction
Morgan Keegan & Co. downgraded the name to Market Perform from Outperform. In the pre-market shares are trading down (-2.48%) on the news. At current price the stock has broken the lower limit of its short-term bullish price channel at $113.51 (also the 10-day MA) and its 50-day MA at $112.76 (now first resistance). Support levels to watch as potential downside objectives are at $110.73, $106.64, $105.02, $100.98, $96.80.

RIMM down over $3 in the PM

[quote author=“Tommo_UK”]RIMM down over $3 in the PM

Will it take AAPL with it?

To day traders and TA:

When you are usually drawing trend lines for the day, you usually also include the previous day in your charts. Is this valid also for Mondays? Should I also display Friday’s chart when drawing potential levels and trends for Monday? Doesn’t the weekend make such trends weaker?

Thanks

[quote author=“wheeles”][quote author=“Tommo_UK”]RIMM down over $3 in the PM

Will it take AAPL with it?

Hopefully AAPL will finally decouple from RIMM and be allowed to trade on its own..