AAPL has definite potential to the downside in my opinion Emile. The "hanging man" and "shooting star" candles, along with the low volume at all-time highs would cause me to be cautious. Also, I'd note that we are in the third wave of buying (notorious for larger corrections when they break) with the pivot highs of the waves breaking the prior highs by a smaller amount along with stronger downside pace in the second of the two corrections.

Hope that helps your decision. (I may even look for an intraday reversal to the short side over the next week or so...thanks!)

I have been following AAPL for years. January is an interesting time for AAPL because the earnings reveals the result of the Christmas season, but traditionally the April earnings is the slowest for AAPL, so going forward, a pullback would not be surprising.

There is also MacWorld Expo in San Francisco, that is more of a stock mover than earnings themselves. If there is nothing amazing in the pipeline, chances are the stock will not make much of a move. Last year was the iPhone, and the stock DID move. I don't expect a similar announcement this year. There are talks about a flash memory-based MacBook, which may be a technological leap but not a commercial leap.

One can take advantage of the high Implied volatility playing a condor or a Broken-Wing Butterfly. I actually have one BWB at play. AAPL would have to exceed 210 for me to lose money. Here is my trade:

Long 10 AAPL Jan08 195 call
Short 20 AAPL Jan08 200 call
Long 10 AAPL Jan08 210 call

My breakeven point is 206, my max profit would be $6210 at $200/share, but if the stock falls, I make $1220, anywhere below $195.

The volatility should drop strongly during or after Steve Jobs usual keynote address. The stock is currently at $198/share and expect to remain around this number, until the actual keynote. Then all bets are off...

BTW, My max risk is $3780.

I see that we're not the only ones looking at Apple before the MacWorld keynote. Fortune.com has an article titled Apple daytrading: How to cash in on the Macworld keynote effect

The rumors are that Apple will introduced a flash memory-based laptop (very small), and a video-rent service via iTunes and AppleTV. Sounds great.
http://www.businessweek.com/technology/content/jan2008/tc2008014_140372.htm?campaign_id=yhoo

Now that AAPL has declined my BWB is making money, and the potential to do even better, if the stock rallies after any announcement. It was not a bad idea.

There's the pullback we've been waiting for; Apple closed down $12.84 (6.59%) for the day, as the NASDAQ was down 3.72 percent. I'm wagering it will be back up around the $200 resistance level by the January 15th keynote. After that, I don't have a guess which way it will go. If Stephen Coleman of Daedalus Capital LLC is to be believed, Apple will be at $600 in 18 months. I'm not so sure about that.

Wow, AAPL is the mayor of Panic Sellerstown. Population: everyone and their poodle. Seriously, What Happened??
Yesterday I listened to Apple's conference call just to see if there was an announcement that Jobs had tragically fallen off of his cashpile. There were no such indulgences. All I heard was that the company couldn't be better. Of course one will always hear things of this nature, but they had the numbers to prove it ( craftily handled by accountants or not, let's not forget this is the company that released the iphone last year, as well as recently released the Macbook Air and a new online movie rental service that rivals Netflix). Well, I suppose we can't predict the road ahead by looking in the rear view mirror. All I can say is that there is an awful lot of supply in an awfully short period of time, and we should be seeing some demand here soon. $135 cannot be AAPL's equalibrium.

I believe AAPL will go to test the $111 level before making a rebound.

I have used the RET (Elliot Wave) as well as my own indicators to come to that conclusion.

The market/sector could probably "pull" AAPL for a 2 week rebound. It has fallen below the 200MA so it has a lot of resistance there.

AAPL is definately in bears territory, Sitting under the 200 MA. I just think far too many people see this as an opportunity for really good long positions, Those of us left after the "R" word has been circulating anyway. Think about how many longs got burned in the last two weeks on this stock, and then imagine how many shorts are covering at the first sign of support, happy and fat. Anyhow it will be interesting to see what comes of this totally oversold stock.

I've traded AAPL multiple times in the past 18 months with mixed results. I would be quite surprised if AAPL clsoes below the 8.16.07 close of 117.05 (I think). However, the previous high at 200 was weakly attained and the fall has been decisive with very significant volume. I have entered long from Wed-Fri with the expectation of a rebound to 175-190. It has been a market leader and is oversold and arguably has bottomed on strong volume.