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Sunday, March 18, 2012

Shorting Apple?

Apple had briefly topped at $600 per share last week. If you have bought Apple in the past at a much lower price, you should pat yourself at the back for congratulations. You must have seen a great profit by investing in Apple. But if I were you, I'd seriously consider to take some money off the table. The price action for Apple in the past few weeks was just something parabolic, a dangerous sign for a swift plunge. People are simply forgetting about any risks and only thinking that Apple will always keep going up a straight line, which will never be true for anything. At some point, the straight line will be broken and likely severely. I think we are at this point of time now.

I'm even thinking to short Apple, although I know it is also very dangerous to short such a high profile stock everyone loves. The timing of shorting a stock is extremely important and no one knows for sure when is the best time point. Probably the best thing to do is to wait for its plunge and buy it at a lower price. I hope it can drop to somewhere around $450 to get in. Maybe a wishful thinking but I will keep a close eye on it.

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