AAPL was downgraded today by JP Morgan, lowering its "target price" $10 to $190. The shares gapped down $2 this morning to $130, but has recovered it all, temporarily. Our pattern recognition tools still has AAPL on a steep downtrend, entering a third wave down at multiple degrees of trend with a target under $100 (see charts below). The stock just completed a Wave 2 correction and has fallen hard out of its Fibonacci Retracement window as it starts another five wave leg down. The red arrows are, "Trend Model Sell Signals." Here's the rub: We are already short AAPL via out QQQ puts, so adding AAPL puts now is not much more different than adding more QQQ puts, so no new trade recommendation. On its newest leg down, AAPL fell from $150 (Dec 12) to $130, while QQQ fell from $297 (Dec 13) to it's current $270. The chart below is our operative QQQ chart and pattern recognition analysis. The next Key Level is around 260.00 where a breakthrough should result in an acceleration down toward the bottom of the trend channel. Holiday trading notwithstanding, it's just a matter of time. AAPL Puts - Feb Expiration (FYI - only)
