This post was just published on ZYX Buy Change
AAPL has fallen to fill the gap from late July at $585.83.
In traditional technical analysis theory, all gaps fill; in practice, most but not all gaps fill.
After a gap is filled, the stock is presumed to enter a support level and based on the traditional technical analysis should not fall much farther. However, our 30 years of experience shows that if the support after a gap fill does not hold, it is extremely negative for the stock.
The coming hours and days will tell us if the support will hold.
What To Do Now?
The long-term subscribers accumulated a 100% of the full core position size position in Apple at an average price of $131. Substantial profits have been realized on 80% of the position and now only 20% of the full core position size is being held. For this reason, officially no action is being taken at this time. However subscribers may want to seriously evaluate their Apple position based on their personal preferences.
The suggestion is that subscribers should continue to own Apple only in such quantity with which they are comfortable if the stock falls another $50 to $80. The advantage to this approach is that it limits the downside but allows subscribers to participate if Apple takes another leg up.
