The recent trend upwards has now come to a halt as the stock found a local ceiling around the 210 price point. This is not surprising as I think AAPL's price has risen too far and too fast - not to mention surpassing its pre-recession highs.
Below is a daily price plot of AAPL with my drawn trend lines:
As AAPL breaks the uptrend and starts to move down, I would look to straight out short this stock. Unfortunately I will not take a short position today as I will be on vacation next week and unable to monitor it. So I will be selling out-of-the-money calls for Jan 2010.
No comments:
Post a Comment