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I traded Apple on the short side for a profit last fall, but then again the stock was much weaker technically back then. Seeing that the summer and fall correction in Apple turned out to be nothing more than a consolidation before going higher, the long-term uptrend, in essence, prevailed over any short-term bearish indicators. As I noted back then, I had no interest in overstaying my welcome to the Apple short, unless I started to rack up a big win and the stock showed signs of unraveling.
Currently, Apple is printing all-time highs on a daily basis, after gapping higher post-earnings in late-Janaury. The daily chart is riding along the upper Bollinger Band, occasionally punching out of it, like today. True, the stock is overbought, but I prefer to short weakness in a corrective market, rather than strength in an overall bullish tape.
Apart from Apple, the market is flattish with a bullish bias today. I see plenty of green on my screens, and I continue to shun the bear case until there is at least some evidence that the market is flashing topping signals. One stock that I am long inside 12631 that is acting very well this morning is Charter Communications. As you can see below, the breakout is in effect, and I am looking to see if the buying volume picks up this afternoon.
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AAPL going silver, circa April 2011
can’t wait for the other side of the mountain