as mentioned recently, a break below the 7/12 lows would mark an official end to the uptrend that began with the 6/4 lows. note how that level also hits at least 4 gaps in just the past month or so as well as several reaction lows/highs, lending further validation to that support level. i would expect it to be defended by the powers-that-be but with AAPL earnings on deck, anything goes. there are times where a trader has two options if unsure of an almost certain market moving event, such as a fed rate announcement or AAPL earnings release; go to cash/hedge or take a stand. i may eat crow and give back some nice profits tomorrow but i am sitting tight with my shorts and will continue to give them some room on the stops for the upcoming volatility sure to accompany AAPL’s earnings report after the close today. anyone adverse to volatility and risk might consider lightening up or hedging before the close today.
