Friday, April 19, 2013

Shortly before 2 a.m., news reporters on the scene in Cambridge, MA were fighting the urge to to connect the dots after a carjacking/murder occurred on the MIT campus, a few miles from Monday's horrific bombing.  FBI presence indicated extraordinary interest in what was ostensibly a local crime. It would be a stunning turn of events if the carjacking suspect and another reportedly just taken into custody are the two suspects sought in the bombing.

The larger, downtrending pattern projects to 1521.25 (see inset), but a smaller one at the right-hand edge of the chart could provide 'camo' access without much sweat.  Obviously, a breach of the still-tenuous point 'C' high would alter the trade, but night owls looking for action should monitor this developing pattern closely, since it showed promise as of around 1:50 a.m. EDT.

Someone posted Rich Ross's 317 target in the chat room, prompting me to take another look. Ross, who works for Auerbach & Grayson, invariably gets it right, and I was therefore curious to see whether Hidden Pivot Analysis could come up with the same number.  As it happens, there's an HP target at 326.12 that is not only close, it is also the most logical next stop for AAPL following yesterday's decisive breach of a longstanding target at 395.27.  The accompanying chart shows the provenance of this number as well as its visually compelling form. An alternative point 'A' at 555.00 (also labeled in the chart) implies that Apple will also have a chance to reverse from its 365.80 'D' target, but if that number gives way, further slippage to 326.12 would become likely.  The midpoints associated with these 'D' targets lie, respectively, at 405.57 and 425.37, and any rally touching either should be regarded by 'camo' traders as an opportunity to get short.

[Much as I'd like to change the subject, I'll finish out the week with this one in hopes that a few readers will take the government's side. As things stand, most who have weighed in in the forum apparently believe that the Boston bombing, and 9/11 as well, were the work of a special-ops team fielded by Uncle Sam.  Although I am wont to attribute nearly everything that's seriously wrong with America to bad government, I stop short of believing that ours would plan and execute mass murders in U.S. cities. RA] As investigators sift clues that now include clear photos of two suspects in the Boston bombing on Monday, Americans have reason to be confident that the FBI will find the person or persons responsible for the deadly blast. When the Bureau says they’ll leave no stone unturned, they mean it literally.  Pulling together millions of pieces of evidence left by murderous explosions is one of the things they do best. Lockerbie comes to mind -- and before it, the solution to United Airlines flight #629, which blew up in mid-flight in November 1955, killing 44 people. John Graham, who had taken out an insurance policy on his mother, a passenger, was convicted and executed. The incident was dramatized in the 1959 Jimmy Stewart film The FBI Story. In each case, investigators literally rebuilt the planes fragment-by-fragment to solve the crime.  This they will do again, with all possible diligence, to make certain that the Boston killer does not go unpunished.  Success in unraveling this crime could come from a photograph or video, from a tipster, from fragmentary evidence at the scene, or from a combination of any or all of those things. But it will come, and we will all breathe easier when the cowardly  perpetrator of this