I’ve mentioned a couple of times that my Dow 14969 forecast was made with one foot out the fire escape window. With that in mind, we should pay heed to the fact that our bellwether of bellwethers, Apple, has not exactly come roaring back following last Monday’s savage bull trap. Although on Friday the stock did make an intraday low very near a 666.37 midpoint pivot as we might have expected, the subsequent bounce did not go very far. Even more discouraging was that, by day’s end, AAPL had relapsed to 667.03, presumably headed for a fall to the 650.57 ‘d’ target associated with the midpoint. Accordingly, and just to be safe, I’m going suggest closing out the eight Nov-Oct 730 call spreads we hold for 7.00 if Apple trades below 666.37 (not 663.37, as erroneously given earlier). The spread closed @ 7.37 on Friday, so it should be fairly easy to do no worse than scratch the trade if the stock is only moderately lower. Keep in mind that if DaBoyz pull out the rug on the opening, causing the stock to gap down perhaps $5-$8 in the early going, it’s a good bet that they’ll run the stock back above 665.00 shortly thereafter._______ UPDATE (11:14 a.m. EDT): Exit the spread now on an offer of 8.00 or better. With the stock at 674.85 at the moment, the spread is currently trading for around 8.20-8.35. If you leg out, you should exit the Novembers first — on the offer –since the Octobers are trading in a 3-cent spread and won’t move as much.
