SSS - Apple (AAPL) Follow-Up at 7:30 a.m. PST
Looking at a daily chart of Apple (AAPL), we find ourselves searching for lows in the pattern that might serve as support or "undercut & rally" type of levels for AAPL on the way down. Right now all we see is the low of February 16, 2012 at 486.63 which it looks like the stock is trying to hold as we type in real-time. If AAPL can't hold that low, then below that there is "nothing but air" all the way down to the January buyable gap-up, around 443. It is conceivable that AAPL could hold up today and try to rally back up to the neckline around 500, but for now we can just watch this play out as we are already ahead of the game if we took a short position in AAPL yesterday on the basis of our the shortable gap-down and our SSS report of yesterday. As the stock comes down, and cathartic bursts of bottom-fishing occurs, all that serves to do is create more trapped longs, in our view, which should, we say "should," add to the selling pressure. But we will see as AAPL remains a much-loved stock, almost stubbornly so, and there are value funds lurking out there that could provide some buying support for the stock, although we consider this the least likely probability. But as we said, for the moment we just sit back and let this play out for now, as the day is only one trading hour long.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.