Apple Hit With "GMFO" Orders Today
By Joel Elconin, PreMarketInfo.com
If you have been trading for any period of time, you certainly know what that acronym stands for. But if not I'll try to clarify as much as I can. GMFO = Get Me F...ing Out!
After relatively mild opens (even some with an upward bias) during Apple's (NASDAQ: AAPL) 72 point nosedive, today was the first time you had a "flush out" open, slicing through a critical support level (578.00).
And who do think exited on that open and where do you think their stops were filled at? The “little guy” and at 571.91. You also had the “I am finally going to get short” crowd piling in, vowing not to miss the move down to 550.00.
And what happened? After the "GMFO" orders were executed and ill-timed shorts entered the market, a wicked 27 point rebound followed. Now what for AAPL? Although there is going to be a pile of orders to exit and get short around the 600.00 level, something tells me the rebound will not stop there. Instead I look for the rebound over the next few days to gravitate to between Friday's close (605.23) and Monday's high (610.28).
At that time, we will be better able to determine if this issue is destined for new all time highs (644.00), or if this is just a dead cat bounce with another major selloff in the cards. Keep in mind, with earnings out next week there just may be a consolidation period as traders take some money off the table, no matter what side of the market they are on.
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