Apple Inc
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AAPL - Correction Incoming - Mirrors SPY Chart

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AAPL is roughly 4.2% of SPY.
The AAPL chart and SPY chart show many similarities.
Both have a main wedge (blue) with a smaller internal wedge (yellow).
Price action, RSI, and momentum on AAPL and SPY are almost identical.
Break of white trendline would be a good entry, although I have seen several false breakdowns recently.
I am expecting a break of the yellow wedge, filling the top 3 gaps (red boxes).

For these reasons, I feel that once AAPL breaks trend in the upcoming week we will also see SPY go into correction.

My position:
I am currently in the AAPL 12/20 Puts. I have incurred a small loss waiting for the position to change momentum, which is expected.
Small position size and buying Puts at least 30+ days out is key when entering before trend occurs, at the swing point.
December 5th at latest, or 50% ($240 loss) will be exit point. Profit potential on this $480 Put was between $700-$2600 (SPY 300-270)
However with current pattern, price, and momentum being exhausted, I will keep the current Put and buy another Put farther out.
With trend at current point, any losses will be reduced as I get closer to expiry.
Puts I am considering farther out - February 2020 and April 2020.

Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
Disclosure - I am long MARA, GBTC, BTCUSD, GDX, VIXY.
Short SPY and AAPL.

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