I am still holding a 1/2 position left of my Apple short, after locking in gains early last week on the first part of it. To update my ongoing, against-the-grain trade for this beloved firm and stock, Apple is currently bouncing off of its 200 day moving average. The 200 day is obviously a widely-watched reference point, and I am not surprised in the least to see some buyers make an attempt down here.
However, the two prongs of my original thesis for the short remain intact. They are:
1. The “Island Top” rare bearish pattern on the daily chart which remains confirmed.
2. The two bearish MACD warnings signs on the weekly, including the MACD cross and divergence.
Also note the potential for the recent bounce off the 200 day moving average to become a bear flag, while most seem to be expecting another V-shaped bounce off that reference point. I may very well add back to the short upon breakdown from a bear flag. However, I will respect a buy-cover stop-loss should the stock rip higher.
Regardless of the short-term outcome of this particular trade, I am at my best as a trader when I make the best strategic decision each and every single time. In this case, as objectively as I can, I believe my analysis is correct and therefore an AAPL short is appropriate. Let’s see if the market continues to agree with me over the steadfast Apple longs.
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Steve Jobs is rolling over in his grave. He may need to come back as a zombie to eat Tim Cook’s brains.
He changed the business overnight. Cook is an idiot.
He’s just not Steve.
What did Cook change about it?
Little things. They offered a Black Friday sale. He raised guidance when Jobs sandbagged it for earnings. Not a huge deal but things I notice.
The market is agreeing with both feet @Chess.