AAPL – Apple Computer (Last:524.65)

Although the 525.27 midpoint support of the pattern shown evinced no discernible support, the pattern itself offers an attractive bottom-fishing opportunity that experienced Pivoteers will appreciate (see inset).  Without going into detail, I’ll suggest simply that you acquire a bullish stake near 522.91 in whatever way suits your style.  In this case, ‘near’ 522.91 means within four cents, since this set-up looks like it will work that precisely.  Stop yourself out if the stock touches 522.82, and don’t pass up an opportunity to take a partial profit if the bounce expected from 522.91 hits 523.24.  Thereafter, you’ll be on your own. (Note: If you buy options at the predicted low, stick with calls priced under $2, and plan on holding them for no longer than an hour, since they will be melting away quickly because of time decay. Ideally, you should try to spread them off by shorting calls of a higher strike against them for at least as much as you paid.)  ______ UPDATE (10:19 a.m. ET):  Boy, did I ever pick the wrong day to try stealing a few shares of this stock on-the-cheap! Apple took a psychotic, short-squeeze leap on the opening bar to $569 (!), goosed by news of the following: 1) a $30 billion increase in its stock buy-back plan; 2) an 8% boost in its dividend; 3) and a 7:1 stock split. Those who bought into this morning’s effusion should be asking themselves, Why is Apple being so nice to me? My guess is that it’s because the company knows that in the months ahead, especially with wireless carriers weaning customers off phone subsidies, price competition is about to impact Apple’s bottom line more than before.  FYI, the rally projects to exactly 626.60, where p=560.59 on the weekly chart, and A=447.22 on 9/20. ______ UPDATE: There was no play, since Apple gapped spectacularly higher on stellar earnings news.