I would cover my short, in absolute, on a move just above the all time high of 247.55. Meaning, I have been establishing a nice core position by shorting in increments. And so far , so good. I have already shorted from ~223 and covered at ~214. If I get a buy signal I would probably hedge on my way up to the second gap level created 2/18- 2/22. Today, for example, I am long RIMM and looking to get long AAPL although I am not in AAPL yet. I see no compellinbg reason not to be short yet as this move has not been on pure buying just on upgrades. So I think we'd need to get more upgrades to keep this thing going. Two upgrades and this thing can't get out of its own way above the first resistance level, so bears still in the game and dominating that reistsnce level. More bears below the 60 min 200 ma level awaiting. Very risky long. Hope that answers your question.
I see. I don't completely agree with your strategy because of 2 reasons.
-Shorting at 220 and cover at 247 gives you a $27 loss. Going above 247 may not give you a +27 gain. Risk/reward is not in your favor.
-From the long term perspective (2 yr chart), the up trend is intact and is in fact very strong. Going against it is a fundamental flaw. I would buy short term dip in a long term up trend, instead of shorting during the dip. From a short term perspective, daily charts are setting up for a possible huge run to new high.
Jacky, you are leaving out two important factors. I already have a $9 profit in the trade (from 223-214=9). So $27-9 is now $18. Also, I would hedge on a technical set up to the upside, so that would lower my risk as well. I'll be sure to post my moves like my long in RIMM at 62.08 :)
Like I said in my original post, this is an advanced trade and it takes a while to manifest. But follow along, its like a puzzle and you'll see the pieces coming together over the next few weeks.