MCRB is a gap down from earlier this year that has been consolidating and working its way back up. Had a big rush back up to the high of the gap down candle where it lost a little steam. Look for this to break into the gap and move up.
In this market we don’t want to try and ride this all the way up to fill the gap, so I used fibonacci to give us targets.
Entry would be with a break and hold of $11.50 with target 1 at $12.37 and a more aggressive target of $14.25 using a stop of $10
*Buy Call or Stock with a break and hold of $11.50
10 CALL 21 JAN
Highest Price $2.50-$2.80 (or cheaper)
Apple dropped on news stemming from demand issues. Basically they are saying that their lack of ability to produce the phones needed this year has killed the buzz. They had their biggest gap down in recent history, only to have it slowly fill today.
This could give us a nice opportunity on a news over-reaction.
We are going to run tighter targets and stops. If AAPL can break back above $165 and hold, we would look to enter with a target of $170 and a more aggressive target of $174 using a tight stop loss of $163.
*Buy Call or Stock with a break and hold of $165
165 CALL 21 JAN
Ideal Entry Price $8.50 – $9.00 (or cheaper)
*Keep in mind, these are not hard stop rules. You can always choose to exit trades early or stay in trades longer.