As I noted earlier, I covered my Apple short inside 12631 on Monday. Currently, Apple is in no man’s land, still holding above $520 which puts pressure on shorts, but also not giving a decent long setup above $534. The purple line on the daily chart below denotes the higher low thesis, which failed.
The issue now becomes whether we have seen a durable double-bottom. Double-bottoms are far less frequent than you might think, at least the ones that prove lasting. As an example, we would need to see a break and hold above $600 to confirm this double-bottom. So, I am either neutral or short on Apple until that happens.
As of now, I am back to neutral. Below $520, and I would look to re-short.
That might sound harsh for an innovative company and “cheap” stock, but there can be no denying the underperformance in Apple of late, especially with many other areas of the market surging. Trade what you see.
_______________________
