AAPL Update

AAPL continues to look very nice as a short, and I am considering adding to the position should it break below $84.50 per share. The stock continues to show relative weakness versus the overall market as there have been a lot of concerns about Steve Jobs. This is obviously something to keep an eye on as any news on Jobs is likely to have a huge impact on the stock. Over the last couple of days the volatility has just totally come out of this stock. Volatility always reverts to it's mean..simply what this means for us is that periods of very low volatility will be often followed by periods of high volatility, periods of very high volatility likewise will often be followed by periods of low volatility as the market works back to it's averages. This volatility cycle can be very profitable if you understand it, sadly most traders don't and they end up running around like my cat Nina when she's chasing her tail. In the end your tired and dizzy, but you did not get what you wanted.

In any event keep a close eye on AAPL. I currently have a small short position on that was opened last week, this will be an add on to that trade.

Here's to 2009!!