Today on CNBC we heard an Apple (AAPL) bull recommend the Apple calls just based on volume. It is going higher was the general theme by the bull. However, volume is just data. At Erlanger Research, we take data, turn it into information and then knowledge.
Unfortunately, the bull is not privy to the Erlanger Option Rank which operates on the knowledge plain and not the data plain. The Option Rank is too bullish and looks ready for a pullback not a move higher from here (see green and red arrows below overlaid with the DMA Osc). The Option Rank looks at open interest, premiums, money flow and total number of contracts that trade. The DMA Osc looks at price action and you want them in synch.
So my prediction now is a pullback from here on Apple. The bull proclaims higher from here. He might wish he was using the Erlanger Options Rank over the next few ranks instead of just pure volume especially when Apple has been higher 10 of the last 12 days before today.