Its amazing the way things go sometimes in the financial markets. Since reaching its all-time high of $705.07 back on September 21, 2012, Apple has fallen an incredible 275 points or nearly 40%. The while line in the chart represents the SP 500 based on an anchor point set back in early 2010. From there you can see that Apple greatly outperformed the SP-500 and just recently has gone into under performance.
I point this out because my friends over at Simpler Options are heavily short AAPL via long put positions. They see the next target at $400 and then $380. And based on Friday's close at just about $430 that represents 30-50 points of potential price action.
At the same time, they are heavily long calls in Google (GOOG) which is just short of new all-time highs.
Its interesting the way stocks trends tend to continue once started. That's one reason I find trading stocks so much easier than Forex that can't seem to get much of a trend going without a whipsaw-like retracement.
Speaking of trends, I'm still heavily long Catamaran (CTRX). I also started new positions in this week in Taro Pharamacuticals (TARO). As mentioned, I also started a new position in Linked-In last week (LNKD) in which I doubled-down on Friday.
As my friends over at Simpler Options say, "the trend is your friend until it ends."
That's all, have a great week.
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