I've been offline for all of Sunday night, so this news is both fresh and stunning ... and saddening. I hope Steve Jobs' health returns, whatever he may be facing right now.
As for my timing in opening a position in AAPL two sessions ago, well, that modest paper profit just went poof for the time being. Brian Kelly was the first I saw to break the news of Mr. Jobs, noting also that Apple shares in Germany are down 2% so far today.
More details here: Steve Jobs goes on medical leave of absence.
Not sure what my strategy will be when the US market opens on Tuesday morning, but if I had to guess ... sharp decline in premarket and the first 20 minutes of the regular session, followed by bargain hunting. If our market follows what's happened in Germany today, AAPL will be down $7 to 341 or so in no time. It could easily be much more severe, and I'm not inclined to wait this out since I was planning to get out before the earnings report anyway. But any chance of shares increasing before earnings are announced Tuesday after the bell ... poof.
There were all kinds of possibilities that could take Apple and its stock down in the long term, but the only real certainty of that happening always centered around Jobs' health. Apple's dependence on him for creativity and discipline is extreme, more so than the old Chicago Bulls and Michael Jordan. All longs can do is hope the company has something positive to announce well before earnings, like maybe on Tuesday morning before the bell.
Whatever the case, it's been quite a run for patient longs.
Update, 4:32 a.m. (Hawaii time): Zerohedge reporting that Apple shares in Germany now down 8%. If that carries over to AAPL shares tomorrow morning, that's a drop of $27 from Friday's close of 348. And if that happens, it will not have mattered if AAPL longs had stop-loss orders or not. Pain around the corner, but that's the risk. Cut losses and get out, keep risk to no more than 2% max of your portfolio.
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