Charts Updated - Sold Trading Position
On April 28, 2008, Brian Benda (Applelot screen-name bpbenda) posted an update of his chart for AAPL, and the actions that he took based on the chart. More of bpbenda’s excellent chart work can be found here:
Sold my entire AAPL trading position today at $173.60. Possible that the stock might make one more very marginal push higher, but I want out of this one on a trading basis. My cost was $128.73, so with this exit today I was able to realize a 35% return on the position from 02/29 to 04/28. You can read the commentary on my AAPL chart via the link above, but I believe the struggle it is having in this range is bearish and that it is just a matter of time before both AAPL and the broad market turn down again. Scroll down through my entire list of charts and I think the story becomes pretty clear. I am seeing weakening price and momentum trends in many charts, including the indexes and averages, bullish divergences and trend line confluences with fibonacci support on the inverse funds, weak volume across the board, etc. and etc. Market is always telling a story, and not a strong one here.
I am not advocating that short positions should start to be established en masse, but you really should be trimming and realizing gains where you have them. Think about how far we have come in the last month to month and a half. Specifically, AAPL was up 50% from the $115 low to today’s high. Whether or not the next major downleg is starting here is debatable. One thing appears certain, the uptrend is slowing. Do not be greedy. Strip emotion from the game. I love Apple, but I trade AAPL to make money. There is a difference between the two. Do your own due diligence, make your own trading decisions, and good luck!
techstock2000 @ April 28, 2008