Apple and Oracle
How cool is this? Everything that I mentioned happened to APPLE.
If you followed along, you'd have an easy 15% gain and a run up of another 10%. Not too bad to have a 25% gain in two weeks.
Let's look back in the past: https://www.thesteadfastclub.com/is-the-ai-rally-ready-for-a-breather/
As an FYI, this was previously gated to paid members but have since brought the older posts live since the gains are now past us.
Let's eat this apple!
What we can see is where we are today. The post I had showed that big gap with the blue line in August. Adding it in here for ease of explanation. As you can see there was nice gap for it to come back and fill. I stated this will happen post earnings.
And what happened, it did exactly that. See that black dotted line at the 213 mark. Apple went from 234 and dropped to fill the gap to 213. Once filled it bounced back up. Easy double dip!
You could have either exited and bought back in at the 213. OR you could have played a handsome Put option and then even a call option.
All in all, what a playbook play for nice returns!
Ok, non paying members...off to talk about Oracle below. Also just a heads up, all previous weekly posts are now accessible if you wanna drop in and review what I've been showing.
ORACLE
Why this stock? Well it has entered the mainstream news cycle AI hype.
But, is this something to chase? Nah! It's something to ride.
Now if you remember Apple, remember we juuuuuuuust talked about them. AND we just showed you how it had a nice gap to fill aaaaannnnnddd it filled the gap a handful of days later.
Well, well, well, look at what we have here.....GAP City.
Do you see it? Monday Sept 9th. It popped off because it become an AI narrative. Everyone wanted in. What a great time to short this.
That GAP alone is 10 points. If we move up to where it is now, it's an additional 15 points. Wow, a 25 point move. Yep.
And you can see in the last 7 days it has been consolidating. Consolidating means it can go up or down. BUT guess what, see that BIG RED LINE above the bollinger band around mid-September. That is called strong resistance. AND that strong resistance repeated itself the day later with that green line with a wick touching the same position as the red line.
Well, this tells me it's going to move down to fill that necessary gap and then shoot back up.
Now what are you going to do? Tell your financial advisor I want to buy Oracle once it hits 145 / 144. Or you could say, place a PUT option on this now and fill it once it hits 145 or so.
What a find!
Jamie