Following my previous analysis on how AAPL price will move, I am now providing an important update. Given that AAPL has just announced very good earnings and pre-market prices are above $198, I see that it is a good opportunity to short this counter. Maybe not direct shorting of the stocks, but definitely buying some Put options to hedge your position will be an extremely good decision.
Here are some things that I noticed today:
1. Sentiments are extremely bullish on AAPL: I was on eToro looking at the comments and after browsing through quite a number of comments, I realised that non of the comments expressed any concerns nor were any negative. In fact, most are saying how strong the fundamentals of AAPL is and how good the company products are. Be VERY VERY WARY!
2. The recent up move is more volatile as expressed in my Elliott Wave counts.
3. Volume has been declining while price has been increasing. This is a classic price-volume divergence.
4. The other tech stocks have been suffering.
Given all the signs, I am confident that AAPL is topping and I recommend at least buying some PUT options on this counter. If you hold some stocks, I recommend selling some call options (at least 20% of your AAPL position).
Good Luck!
Here are some things that I noticed today:
1. Sentiments are extremely bullish on AAPL: I was on eToro looking at the comments and after browsing through quite a number of comments, I realised that non of the comments expressed any concerns nor were any negative. In fact, most are saying how strong the fundamentals of AAPL is and how good the company products are. Be VERY VERY WARY!
2. The recent up move is more volatile as expressed in my Elliott Wave counts.
3. Volume has been declining while price has been increasing. This is a classic price-volume divergence.
4. The other tech stocks have been suffering.
Given all the signs, I am confident that AAPL is topping and I recommend at least buying some PUT options on this counter. If you hold some stocks, I recommend selling some call options (at least 20% of your AAPL position).
Good Luck!
Comment:
I realised that in my rush to publish before the market opens, I have not updated the price target. So here is the top target: $205.
