I went short Apple yesterday at $527.32 inside 12631 as a result of the weakening higher low thesis I wrote about yesterday. Despite today’s gap lower, I am not going to get too comfortable with the position given Apple’s propensity to rip the faces off shorts for several years now.
At the same time, I will not succumb to intimidation from Apple fanboys.
Thus, the only sensible strategy is to key off the failed higher low trendline. As you can see on the 30-minute chart below, I do not want to see anything more than a low buy volume retrace back up to it that quickly fails. Anything stronger than that, and I will be forced to consider covering out of respect for another big bear trap.
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It’s also sitting on the neckline of a longer-term H&S pattern. Good luck and nice trade. If the H&S pattern completes you could have a great early entry.
Thanks. Should be exciting either way!