“Apple (AAPL) shares, which were in free-fall mode all of October, have already spooked investors with a $120 drop from the all-time high in September. So, what will November bring?” Chris Vermeulen asks for Minyanville.
“As we all know, it’s hard to follow through without a proven trading strategy to keep us focused, thus a reminder: The key is to buy when others are selling and then sell when everyone is buying,” Vermeulen writes. “For the market to reset (flush out investors/traders) it must shake as many longs out before it can start rising again. That price-break level [for AAPL] — which also happens to be a Century Number $600 — was where many investors had placed stops. The proof is the volume spike of 40,000,000 shares which clearly shows that stops were triggered once that $600 level was broken.”
Vermeulen writes, “This is a good thing: We want stops triggered because that gives more power to the next rally/bounce.”
Read more in the full article here.