Several days ago I made a case that AAPL might be in for a decline. While that post certainly had a day-trading (go short) aspect to it, I really was making the case that longer term, there would be headwinds that would cause AAPL to slow its march higher and ultimately reverse. APPLE RESTING OR "SHIFT" IN PLAY?
Please examine the chart below. I've drawn an additional line or two to show where we might see some major support at $305. Again, I am looking at the play from a longer term strategy view (I think these are the ones I'm best at).
Some Slopers are currently taking a shot on the long side of AAPL, and when you take a look at the daily chart here, you can see why they would go after it. If I were playing that trade, I think I'd lighten up at $340 if I got there. I think there could be a short term bounce, but ultimately a failure back at the $330 level and a fall to test my $305 level.
So there you have it, a bounce here, and then over the next several weeks a drop through the $330.00 to visit $305. As for my RIMM play. I'm keeping that one short. www.goatmug.blogspot.com