This is meant to be a bit of an update to the previous idea I had a little while that got featured by the editors on this site. Then, I was mentioning that the stock got a bit overextended and was showing some weakness into earnings. Thank goodness I didn't short it then, as the earnings report was quite strong and AAPL shrugged off the COVID crisis & had a huge quarter. Since then the stock has been in levitation mode, maxing out at a 15% premium to "average" pricing on August 6th. Since, the stock has taken a bit of a breather until Friday, when the stock went back into ramp mode. I think it's a short for the following reasons:
1.) The split is on Monday, something I expect will be very much a "sell the news" event
2.) Market breadth is declining massively, suggesting a general market selloff is in the cards
3.) The stock closed at a 12.6% premium to average pricing, a huge divergence given a complete lack of fundamental catalysts
4.) AAPL isn't a stock like W or OSTK that has huge a huge TAM bid & experienced a narrative shift with COVID and thus can't really continue sliding around like those have % wise.
I'm looking at a short target around 440 or 110 post split. I'm short from 497. Time will tell on this one.
1.) The split is on Monday, something I expect will be very much a "sell the news" event
2.) Market breadth is declining massively, suggesting a general market selloff is in the cards
3.) The stock closed at a 12.6% premium to average pricing, a huge divergence given a complete lack of fundamental catalysts
4.) AAPL isn't a stock like W or OSTK that has huge a huge TAM bid & experienced a narrative shift with COVID and thus can't really continue sliding around like those have % wise.
I'm looking at a short target around 440 or 110 post split. I'm short from 497. Time will tell on this one.
Want more high probability trade ideas?
Click here ⬇
seekingalpha.com/author/propnotes/analysis
Click here ⬇
seekingalpha.com/author/propnotes/analysis
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
Want more high probability trade ideas?
Click here ⬇
seekingalpha.com/author/propnotes/analysis
Click here ⬇
seekingalpha.com/author/propnotes/analysis
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
