Chart: AAPL
AAPL (Apple Computer, Inc) has been on my "shorts watchlist" every since it broke down below $90, and I made a tidy profit shorting it earlier in the week. While the stock has bounced off the week's low, it has not been able to mount the $90 area. The fact that AAPL did not participate in the run that many momentum and leadership stocks made today lends even more credence to the argument that AAPL has either formed a top or at least will test the 50 day MA.
Technically, take note of the down trending RSI reading and the pick up in volume as the stock consolidated and then broke down below $90. A bullish reading would have weak volume on the pullback.
There's a good chance I will short the stock again tomorrow morning.
1 comment:
Someone should mention that was a good observation on AAPL. As a market leader it certainly foretold of recent market weakness. Even the 50 day reversal a classic institutional buy point had a volume spike but failed to reverse the trend on 12/19. Maybe it will find support when the RSI reaches the 30 area as in the past but that could reach well into January.
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