Although I do favor the scenario that takes AAPL down to the primary uptrend line which lies about 3% below current levels, AAPL did hit the first target that has been listed on the trade since the original short entry post back on the evening of Friday, August 24th (with an official short entry to be made at the open on Monday). Therefore, AAPL will be added to the Complete Trades category but will also remain an Active Short Trade for now as well since I favor T2 over time on this trade. There is also the possibility that I might remove it from the Active Trades soon & add it back once I believe the next major counter-trend bounce has run it’s course.
Whether the stock bounces here after tagging this horizontal support, a little lower on or around the uptrend line, or well below that level I do believe that the odds for a decent bounce will increase sharply going forward. Therefore, consider taking at least partial profits on this trade if you did not do so today. Here is a historical view of how this trade has played out so far, which has been pretty much spot on, other than the entry which was a mere 3 weeks and 3.7% early but still good for a 23% gain in a stock that the masses were certain would be at 1000 by now.
