This is a painful note to write.
As I wrote in the previous note, I like Apple and am bullish on AAPL. Added to this is the mini-successes I've been getting recently in my call option trades on Apple. Because of this I've become biased in my judgement and blinded to the bearish warning signs. I did notice that the daily RSI entered the overbought zone on 4/7/08 and debated a little but ultimately decided (? or hoped) that it would still continue to rise. So I bought my first batch of APV DJ on 4/7/08 and continued to add to that position even though the price kept going down, thinking it will turn soon.
Because of my optimism, I've ignored the bearish warning signs of the daily RSI on 4/7/08 and the downgrade by an investment firm on 4/8/08 citing macroeconomics and am paying for it now. I wish I hadn't ignored these signs and gotten out of this trade (or bought the put instead), especially now that GE's earnings report has pushed the stock further down.
I'm debating currently whether to get out on Monday or try to weather through it till Friday. I expect some support at $145.75~$146 and the current price is close to it. I'm not sure whether that support will hold or not. If it holds, I think that may be a good entry point for a new bullish position; if it doesn't, maybe I should buy some puts.
