AAPL (Apple Corp)

Feb 10, 2007

Apple has been a wonderful stock and I'm thankful for the profits we have made on the long side over the past 2 years. However I believe that now everyone who would ever want to own AAPL now knows the story and either owns it or has decided not to buy it. I think the last hurrah happened at the beginning of the year when a few new products were announced. The stock traded up on extremely strong volume. It's often hard for a stock to hold up after an extended bull market and then a climactic buying point.

Since the final buying point, AAPL has been experiencing liquidation or selling on high volume. I decided to short after 4 positive days didn't make up much ground and didn't attract a lot of volume. I shorted 3,500 shares or 3% at $83.65 and expect overall weakening market conditions to continue to push the stock lower.

Feb 22, 2007

Yesterday the stock traded up on strong volume out of its consolidation. This was a result of an analyst raising expectations and since the market had such a constructive reaction I decided to close my position rather than wait for the full 10% stop. This will probably be a good name to short in the future, but the overall market environment is stubbornly strong so the odds are not as favorable for short positions as I originally thought.