Apple (AAPL) again got turned back at around the 465-466 resistance level and the top of its two-week range since gapping down after earnings in late-January. David Einhorn was babbling this morning about AAPL being an incredible buy, but it is interesting that AAPL has pretty much ignored Mr. Einhorn, whose comments can often send stocks moving sharply in one direction or another.
AAPL remains a short using the 465-466 level as a short. With the market selling off on heavier volume so far today, and with no "heavy" news causing the sell-off, caution is advised on the long side. A breach of Monday's lows would put in a lower-low and likely lead to more downside, hence we like tehe AAPL short here.
We would also note that Amazon.com (AMZN) is working on a Late-Stage Failed-Base type of set-up as it has now breached the 50-day moving average for the first time since breaking out at the end of December. This is an LSFB short-sale set-up using the 50-day moving average at 259-260 as an upside guide for a stop.
Fair Disclosure: We are short both AAPL and AMZN currently, but may be in and out of the stocks depending on how the day's action progresses. This market tends to act in bizarre fashion at times, and often when it is moving strongly in one direction it can suddenly turn on you, so stay alert and watch your stops.
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