Apple Inc. is once again trading at it’s proverbial line in the sand, refer to my previous article here: $AAPL Line in the Sand.  The large top forming on this company is intriguing from a short perspective.

If the Brexit fears produce a global slowdown, $AAPL could be a primary instrument in which to get short.  It’s one of the most liquid trading securities, options included, and it provides exposure to a tech earnings downturn.  Here’s my updated long term chart:

My initial pattern did not play out as buyers came in and provided a stick save at the last moment.  However, the way $AAPL is trading lately is indicative of sellers supplying the market with shares.  Even today, during this nice bounce in equities, $AAPL is a serious under performer.

Here’s a short term chart:

As you can see I’ve been playing it pretty well; but the big move will come once it breaks down through the Line in the Sand at around 92.50ish.

Bottom Line: if you’re looking for short exposure, AAPL is an ideal candidate.

Follow me on Twitter at @dyer440.

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I’ve been watching Apple Inc. ($AAPL) for a while now, and frankly, hoping for a shortable bounce.  Unfortunately, I was away from the computer all day today (at a conference) and only just now noticed the line in the sand breach by Apple.

See below:

This chart technically displays a funky looking head and shoulders pattern with an extra “lower high” as noted above.  There is a very long term trendline rising up all the way back from 2009 that is converging on this area as well.  That trendline will probably attract some value buyers into the stock.  Whether it will be enough to recover the $93 level is yet to be seen.

I believe this is a critical moment for Apple, and for that matter the stock market as a whole.  Since this picture is so well defined I’d suggest using this company as a guidebook for the entire market.

Apple is like this century’s GMas goes GM so goes the nation”.

Bottom line: if $AAPL cannot recover the line in the sand at approx. $93, then I’d surmise that not only is $AAPL heading lower, but the big bull market itself is dead.

I may buy some short term puts on this in the morning although I hate the fact I missed the break earlier today.  Stay tuned and keep your eye on $AAPL as an overall indicator.  Finally, be sure to follow me on Twitter @dyer440.

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