We’ve been using a 243.68 target in this stock to stay unemotionally on the right side of a mature bull market that only bears caught in the ringer are buying aggressively any more. AAPL is the key bellwether to watch, and that’s why getting it right is so important. My confidence that the target will be reached is based on the way the stock plowed through the midpoint pivot at 218.13 the first time it hit it. Even so, the pink line in the chart shows a secondary pivot at 230.91 that should be monitored diligently, since it is a logical place for a stall or worse. Today’s high missed it by $1 — close enough to infer that bulls may have had it for the time being. If AAPL feints to 230.91 over the next day or two, you can buy close-dated puts. Risk no more than you would on a bunch of scratch-off tickets, since the odds are not heavily in our favor. ______ UPDATE (Oct 23, 10:45 p.m.): I’m somewhat relieved that AAPL has exceeded 243.68 at a time of day when we cannot hurt ourselves with put options that would be under attack if this were happening during regular hours. Let’s take the stock’s measure after the opening, since there may be a less risky opportunity then. I would still be very surprised if AAPL does not peak within $2 of the target. So far tonight it has traded as high as 244.25.
AAPL – Apple Computer (Last:244.00)