I believe that the recent accumulation of AAPL shares is just the beginning of a much slower, longer-term advance. I believe that a massive number of shareholders are sitting at or near breakeven at current prices. Given the turmoil they have seen in the price and the losses they have had to live through, I think they will slowly come out of the woodwork, and unload their shares.
The story about mimicking the stock market crash of 1987 continues with AAPL shares. What is useful to note is that there were three attempts to get over the same resistance levels the year after the crash. The blue box with the blue lines projecting out to the right represent the same chart levels from the same pattern in the 1987 stock market crash.
The point here is that it takes a long time for shares to find a new home and especially so for a company with a market cap of $500 billion.
If you don't own AAPL shares, I'd suggest selling puts going out 6-9 months at the $480 level on the next decline to $480. If you do own AAPL shares, I'd suggest selling "at the money calls" or $500 strike calls with the same 6-9 months of time to expiration. For adept traders, I'd be shorting against $510 and covering $490, $485, $480 with a stop over $525. I would also go long at $480 for starters, then add at $485 and at $490 and exit up at $510-$515.
I think we are looking at a great "trading range" setup for AAPL for the next 6-9 months.
Tim 3:50PM EST Monday, August 26, 2013