The relentless plunge of the World’s Second Most Valuable Company continued on Friday, making it all but impossible for the broad averages to rebound intraday or even in the final hour. AAPL now looks like a good bet to fall to at least 161.97, a midpoint Hidden Pivot support shown in the chart (inset), or possibly to 160.23, an alternative target given here earlier. If, heaven forbid, the stock closes beneath the lower number for two consecutive days, look for more downside to as low as D=151.36. That would equate to a 35% fall from the all-time high of 233.47 achieved in early October. We hold a longshot bet, the Dec 28 190/195 vertical call spread, purchased 20 times for 0.03 apiece. Total risk is $60 plus commissions, but the position has the potential to produce a profit of as much as $9940 if the stock reverses with a vengeance before year’s end. _______ UPDATE (Dec 17, 9:56 p.m. ET): You can bottom-fish the 161.96 target shown here with a very tight stop-loss, but please note that using the night-session bars yields an alternative target at 161.60. A decisive breach of this midpoint Hidden Pivot support would be very bearish, opening a path to as low as D=150.63 or alternatively (as noted above) 151.36._______ UPDATE (Dec 18, 8:55 p.m.): No change in my outlook or advice unless AAPL should exceed 172.57, the point ‘C’ high of the pattern shown in my last update.
