“Apple Computer continues to charge higher, using the steadfast support of its ascending 10-day and 20-day moving averages. In fact, the shares have ramped more than 158 percent since the start of the year, lifted by the support of their 10-week and 20-week trendlines. The stock is now trading at its highest level since September 2000 and has outperformed the Nasdaq Composite since mid-December. The security is moving back into contention with former resistance at the 60 level,” Jocelynn Drake writes for Schaeffers Research’s “Street Chatter.”
“Considering its amazing technical performance, you would expect to see an abundance of optimism among traders. Not quite. Options players have exhibited a growing preference for puts when it comes to AAPL. The equity’s Schaeffer’s put/call open interest ratio (SOIR) currently rest at 0.88 and is higher than all but four percent of those taken over the past 52 weeks. Wall Street is also showing a surprising reluctance to jump on AAPL’s bandwagon. According to Zacks, seven of the 17 analysts following the firm still rate it a “hold.” Any upgrades from this hesitant group could spur further gains in the shares. The only bunch that has thrown in the towel appears to be short sellers, as the number of AAPL shares sold short plunged by 17 percent in October to 12.3 million shares. According to our Equity Scorecard (available via Schaeffer’s Gold, AAPL currently carries a rating of 8.0, indicating that the shares remain an excellent bullish opportunity as pessimism continues to linger on this stellar technical performer,” Drake writes.
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