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A quick update here for those of you who have been interested in my short AAPL trade. The daily chart above tells me to stay short here, given the confirmed island top, breakdown from the initial consolidation, and then the further breakdown from a bear flag today. I could easily see a test $360 coming soon. I will let the price action guide me, with a buy-cover stop above $395, but for now this remains my type of setup and trade.
I am also staying short due to the weekly chart. Note the bearish MACD divergence on top of the bearish MACD cross. Historically, this is a big deal for the stock, and favors either a sideways or down period of price action over going higher. I have no desire to call a generational top to Apple. Nor do I wish to argue how many iPads they will sell for Christmas.
I am simply trading what I see.
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Great analysis Chess. I’ll be a long term buyer at 360. No witty picture?
Witty charts are better sometimes 😉
I’m still with you on this trade. However, I’ve been watching many other names that I believe will give me a better return(IE More downside risk)
I will be shorting AAPL below $350.(That’s my “Holy fuck, get me out of here!” price and I believe it moves significantly lower from there. Anyway, till them I’m on other trades.
Well, yeah, below $350 it can go to $300 no sweat.
Thanks for the update. Great call/timing on this btw.
Thanks, Mark!