Friday’s wicked thrust created an island-gap reversal on the intraday charts. From our perspective, the very bullish significance of this comes from the fact that the rally impaled the midpoint pivot, all but guaranteeing more upside at least to the 166.80 target. This has in fact become so likely that I will eat my hat if AAPL fails to reach the target. Trading the move will be another matter, however, since every trader and investor on earth is bullish at this point. That means the stock is certain to turn diabolically evasive in order to prevent ‘everyone’ from making easy money on a sure thing. Mr Market could thwart us in several ways: 1) the stock gets to 166.80 much more quickly than expected — i.e., like Monday or Tuesday; or, 2) it chops and hacks its way higher after nominally breaking out above the old all-time high, 164.94, recorded on 9/1. Regardless, we needn’t be confused or fearful, since any price action can be reckoned, simply, in impulse-leg terms. For this purpose, use any one of the three ‘external’ peaks that I’ve labeled in the chart. _______ UPDATE (Oct 30, 1:51 p.m. EDT): The stock has hit a very clear, very compelling, very long-term target today at 168.46 (click here to see chart). The actual high so far is 168.07 — a bullseye, for all intents and purposes. I’m as curious as you are to see what the stock does next. If you’ve held a long-term position, an adjustment is warranted at these levels in the form of a covered write, full or partial profit-taking ; or most aggressively, a short from the target.
