Monday 21 July 2008

Multiple Time Frames and AAPL

The Emini has dropped 12 points to 1,250 in after hours in response to Apple's (AAPL) earnings outlook. I don't trade stocks but thought it might be interesting to post these 2 multiple time frame charts of AAPL.

Multiple Time Frames AAPL Weekly Image

Multiple Time Frame 1 - AAPL Weekly

The weekly chart above shows AAPL's break into an uptrend at $70 and subsequent rise to $200. The Hilbert Sine Wave did a nice job of catching the end of the Pull Back (labeled PB on the chart) at $120 and then also picked off the end of the up trend (labeled END on the chart) when the $200 level was tested again.

When trading stocks with multiple time frames I suggest using the weekly chart to determine the major trend direction. Once you see an End of Trend signal then it's time to start looking elsewhere for long trades.

Multiple Time Frames AAPL Daily Image

Multiple Time Frame 2 - AAPL Daily

The AAPL daily chart shows a break into up trend at $125 - the same level that the weekly chart was signaling a Pull Back and resumption of the up trend. The final leg of the up trend was then under way and peaked at $190. We had a final cycle turn with a Pull Back and then End of Trend signal at $180.

So on multiple time frames (weekly and daily) we have End of Trend signals around the $180 to $190 level. Looks like the party is over and in after hours tonight AAPL is down over 10% to $149.

Good luck with your trading.