So far AAPL is finding support at around the 570 level. The indexes are in a technical position to bounce, but so far that is not clear as the market struggles to find support. If we saw a bounce in the market, then AAPL might push up to the highs of the day where we might look to get more aggressive on the short side with the stock. Otherwise the 565.61 low of June 28th would be where we might expect at least an undercut to occur before the stock tries to rally in concerted fashion. In any case, we plan to be nimble on this one given AAPL's extreme liquidity, so can be in and out of heavy and light positions as we work it, but we definitely feel that AAPL's chart indicates a very real, potential LSFB type of set-up in a major market leader, something that may also bode badly for the market at this point. The situation is fluid, so we intend to keep our stops tight here on AAPL, but in any case it will be very interesting to see how this trade pans out, if at all. Remember to manage risk!
Currently we have a short position in AAPL, but that can change at any time.
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