Apple (AAPL) has gapped down today on heavy volume allegedly on reports that iPhone 5 displays orders have been cut in half on the basis of weak demand. We prefer to look at this from a technical perspective, which is essentially as a shortable gap-down move using the intra-day high of today at 507.5 as a quick upside stop. One could take a smaller, partial position on this basis and then seek to add if the stock breaks the neckline at around 500.
Fair disclosure: We have a position in the stock.
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