Apple is up

9% after the company's quarterly report. This is short covering not the beginning of a move higher. There are so many companies that are cheap and this is not one of them. If you are not short then stay away. In five years, this company's value will be significantly lower then it is today. I cannot say share price due to inflation but if that is the case commodity related companies will surge as Apple lags.

I shorted Apple two years ago at the same price it is today and there was an options backdating scandal and now it is at the same price but this time with Steve Jobs health on the line. Two years ago began a bull market and currently we are in the throes of a bear market. With that logic, Apple is beginning its downward projectory.

One can say that Apple already tanked from the high 100s and there is no denying that, but now since the trend has changed it is a great stock to pare trade with and ride on the downside. The risk is 100% (going to its old high) and the reward is 50%. But the odds are heavily in the bears court even with the price up $13 in 24 hours.

This could be a classic fade at the open.