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Jeff Cooper: Breaking Down Old School AAPL and New School ROKU


Yesterday, we showed Daily Market Report readers a chart suggesting AAPL's 20-point rip to well-defined resistance may have been a culminating climax of some degree.

AAPL is set to turn the important 3 Day Chart down (3 consecutive lower daily lows) this morning, putting it into gap-window from November 3.

Offsetting the gap suggests a test of the 20 day line near $166. That ties to a 50% retrace of the rip.

Meanwhile, ROKU reversed following a 3 day stampede yesterday.

3 important trading principle come into play:

1) The 100% Rule
2) The 3 Day Rule
3) Straight lines keep you honest. When ROKU broke a little 10-minute trendline, it waterfalled.

ROKU spiked 100% on the earnings gap from last week.

However, after 3 large-range winners, this 10-minute chart shows that it left a Soup Nazi sell signal yesterday:

Yesterday, we took a stab on the long side after ROKU tested its 20 period m.a. on the hourlies for the first time. This was good for a few points of profit — a nice little trade.

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