On a take-no-prisoners rampage, the stock has bounced 12% since bottoming a week ago. This tripped a ‘counterintuitive’ buy signal at 181.72 that implies more upside to at least 193.18, the midpoint Hidden Pivot (see inset). However, AAPL would become a tempting ‘counterintuitive’ short if it falls exactly 5.55 points from any peak occurring between Friday’s 191.92 high and around 192.70. That means the signal to get short would trigger at 186.37 if AAPL goes no higher than 191.92. Tune to the chat room for guidance in real time on put spreads that could effectively leverage a sharp relapse in the stock._______ UPDATE (Jun 10, 8:57 p.m.): AAPL easily achieved the 193.18 target given above. However, if the stock closes toward the lower end of its range on Tuesday, that could generate a stochastic sell signal. Even if not, the short squeeze has gotten very overbought on the daily chart. _______ UPDATE (June 11, 5:43 p.m.): The stock looked no worse than neutral at the bell, although a close Wednesday at the lower end of its range would still tip the daily chart bearish. _______ UPDATE (Jun 12, 11:08 p.m.): The stock is doing a Wile E. Coyote, hovering over an abyss without visible support. We’ll step away for the time being, since there is no percentage in guessing here.
AAPL – Apple Computer (Last:194.18)