SSS - Newton's Apple (AAPL) Falls Through the Neckline

Published : January 15 2013 at 9:49 ET

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.

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.