SSS - Newton's Apple (AAPL) Falls Through the Neckline
As we discussed in yesterday's Short-Sale Set-Up (SSS) report, a breach of the neckline in Apple's (AAPL) head and shoulders formation would be a place to add to an initial short position taken yesterday on the shortable gap-down move. With the stock moving decisively lower on very heavy volume, we are looking for an initial downside price target of 443, the top of AAPL's buyable gap-up from January of 2012. With earnings coming up next week, AAPL short-sellers must weigh this in determining how big of a position they want to sit with going into earnings. That will depend on how far the stock moves to the downside prior to earnings. We will of course be following this as the situation continues to develops.
Fair disclosure: We are still short a position in AAPL.
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