Hey, Ross here:
And let’s start a new trading week with an actionable trading idea – but on the short side instead (you’ll find out why in the Insight of the Day).
Chart of the Day
Apple has been a top performer all year. The uptrend has been a thing of beauty – steadily marching higher since January.
But that ride is over. The stock fell 10% in a week and still failed to attract buyers. It finally broke down last week before reversing higher.
But that rally failed. And AAPL is again breaking through short-term support.
Traders may consider selling short AAPL stock here in a bet that it will go lower still. This is a very low-risk trade since you could place a buy stop at $182 and risk less than 3% on the trade.
Given the high price of the stock, it may be easier to simply buy a put option, like the AAPL $175 put that expires on October 20.
Insight of the Day
The most important skill as a trader is to be able to fluidly move with the market.
Stubborn traders go broke.
The market leaders have been rolling over and retracing beneath their 50-day moving average – a key level that generally supports top stocks through the move higher.
Nvidia’s blockbuster earnings report did not change that – which tells me the tech rally is likely over for now.
But just as we made money on the way up, we can do the same on the way down. That’s why today’s actionable trade idea is a short on AAPL.
The most important thing is to stay agile and fluidly move with the market. That’s how you can seize opportunities no matter what’s happening.
So, if you want to get a complete strategy for adapting to the volatile market and picking off opportunities most can’t see, just click here.
Plus, as part of our Labor Day special, it’s yours for just 99 cents (not a typo).
Embrace the surge,
Editor, Stock Surge Daily