SSS - Follow-Up to Monday's SSS alert on Apple, Inc. (AAPL)

Published : June 10 2011 at 12:26 ET

Since Monday, when we first indicated that AAPL was flashing a short-sale signal at around the 340 level, AAPL stock has come down to an intra-day low 326.59. The 200-day moving average is around 323-324, and that would be our first reference for a bounce. Also, the stock has undercut the 329.42 low of mid-May, which could cause an "undercut & rally" situation, but this might simply occur AFTER the stock reaches or gets close to the 200-day moving average. Currently, it lies a hair over 1% away at 9:23 a.m. Pacific Time. Short-sellers in AAPL up around the 339-340 area should simply maintain awareness of where the stock is relative to the first downside objective at the 200-dma. Also keep in mind that the general market is approaching its 200-day lines on both the S&P 500 and the NASDAQ, so any bounce attempt as the market comes down here would be logical and would of course likely coincide with a bounce attempt in AAPL. We might consider the 330 level as a trailing stop just in case the stock does stage an "undercut & rally" situation.

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