What happened to the good old days when AAPL stock went up all week and pulled back a little on Friday?

Well, AAPL has been slowly climbing all this week and is up another 2% today.  This Monday I let all my Premium Access Subscribers know that I was entering a Bullish Call Spread on AAPL… It’s now up over 30% and running!

What’s up with the GOOG and AAPL pairs trade?

Anyone who has been following the market knows that AAPL’s been heavily sold in a confirmed down trend for 6 months, meanwhile GOOG has been a bullish beast during the same time frame. Many have coined it the AAPL and GOOG pairs trade.

A pairs trade is when you buy one stock and sell another. In this case, big time players on Wall Street have been buying up GOOG shares and selling their AAPL shares since the fall of last year. With AAPL perking up all week and GOOG dropping down, it is starting to feel like traders are unwinding that pairs trade. To do this, they must sell their GOOG stock and buy AAPL stock.

AAPL Stock 10 day 15 minute Chart trending up!
AAPLTrader AAPL Chart 3-15-13



GOOG stock 9 day 15 minute Chart trending down!

AAPLTrader GOOG chart 3-15-13


The $450-$455 level will be the next big level for AAPL to retest.
If AAPL can get up and above this level then the downtrend we’ve been in for the last six months
will officially be over… and I think I speak for all Apple investors when I say this… “it’s about time”.

Here is a six month chart of AAPL showing the downtrend with two yellow lines.
AAPLTrader AAPL 6 month chart 3-15-13


AAPL is still climbing as I write this and my Bull Call Spread is turning into a very nice winner!

Trade On,

PS. In the next ten days I’m coming out with a new book called “The Apple Investment Strategy Guide” – This will cover bullish, bearish and neutral option strategies for AAPL. Keep an eye out for an email with more info – coming very soon!

Micah Lamar
Founder and CEO
AAPLTrader Social Network

Micah also writes for Seeking Alpha, The International Business Times (IBTimes) and The Wall Street All-Stars. Micah is a Stock & Options Mentor, helping thousands of traders become more successful! Supporting traders in learning technical analysis, option spreads and trading as a business!

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