Monday, October 22, 2012

My omission of this trading vehicle from the touts section in recent days has been deliberate, since price action has been tediously unsuitable for our purposes.  And so it remains in the wake of Friday's probably gratuitous dive. We await (much) better opportunities, but you should stand aside for now.

The futures still appear bound lower, to the 1686.00 target shown. The outlook would brighten, although it would not be negated, with an unpaused upthrust today or tomorrow that exceeds the two external peaks labeled in the chart, the higher of which lies at 1740.30.  In any event, I would strongly encourage 'camo' or tightly stopped buying if the futures fall to the target. 

Today's commentary speculates that Apple will make its low for the week this morning or Tuesday if earnings due out later in the week are to be strong. Although I am unable to detail in advance a  low-risk strategy for buying a sometimes wildly volatile, $600 stock based on this premise, I can at least suggest leveraging the 605.56 target of the pattern shown if possible. A feint lower, but not too much lower, seems like a logical way for DaBoyz to start the week if they are intent on moving the stock higher into Thursday's earnings report. If you are able to get long using 605.56 and camouflage, please let me know in the chat room so that I can provide tracking guidance. This won't be easy under any circumstances, so kudos in advance to anyone who is able to nail the trade.  _______ UPDATE (10:40 a.m. EDT):  AAPL has risen sharply from the get-go this morning, providing few enticing handholds, camouflage or otherwise. On the 1-minute chart, the first available buy signal was tripped at 615.63 (A=609.62, B=6161.14 and C=614.00 -- all single-bar coordinates), but it held $1.64 of entry risk per round lot and therefore no special appeal. In retrospect, the best way to have used the 'x' trigger was to have initiated the trade with a 'timed' buy-stop. Buyers who did so would have been subjected to no test of nerves, since AAPL hit the trigger and never looked back. Most immediately, the bounce is targeted on 629.58, a 'd' rally target tied to a midpoint pivot at 623.94 that lies a nickel from this morning's so-far high. Because the 'midpoint effect' is so precise here, any rally that breaches 623.94 decisively is likely to go precisely to 629.58 and then stall.  _______ UPDATE (3:38 p.m.