Today was a strange one. After last week’s experience (awesome Wednesday, awesome Thursday, terrible Friday), I was already worried that I was going to repeat the same thing (awesome Monday, awesome Tuesday……….and then we opened sharply higher Wednesday). I whined to my buddy Northy that we bears were limited to just two good days by federal law.
I had come into the day with 90 shorts, but as the market was pushing higher, I went through all of them and trimmed my risk by covering 15 of them. However, the market completely lost its mojo (once oil reversed its rally), and things went into a free-fall again. By the end of the day, I had a nice profit, but the profit would have been twice as big if I’d just stayed in bed all day and looked at reddit. Twice as big. It really sucks to know I gave up half my day’s profits simply by trying to reduce risk. Yuck.
One stock I didn’t cover was Apple, and I wanted to finish up the day by offering a couple of thoughts about it. As you can see from this very long-term chart, Apple has spent decades within a couple of wedges, and it has broken both of them now. I will repeat what I’ve said many times before: I believe the high price we saw earlier this year on Apple will be the highest price for years and years to come (if not forever).
