conshmillo has been pointing out the current overbought position of AAPL, which got “worse” today on an RSI basis (78 vs. 77.6 yesterday), and stochastics over 80, Williams %R at -10.3 (down from -1.5 yesterday). Now these indicators (stochastic and williams) have been “overbought” for almost 2 weeks, and Apple has, recently, been overbought for as much as a month (~2/26-~3/16, and ~3/22-~4/19) so this condition could go on for a while. Also note that all the trend indicators show strength in the trend (MACD, ADX, Williams Accum/Dist) which is counter to a reversal.

However today we got a doji candlestick pattern, indicating “indecision” with a long upper tail, indicating that selling pressure won the day after a long fight. Combined with the 2 strong white candles before it (Thursday and Monday) (Friday was triple witching, so somewhat anomalous, if you take out the first 10 minutes of trading, the stock did nothing), would indicate that a reversal may be near, much like the doji indicating reversal from a downtrend on 8/27 (that doji had a long lower tail following a relatively large black candle).

Tomorrow we’ll see.

(fully out of my long AAPL positions at 285 today, opened an October 270 put at $3)