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AAPL – Apple Computer (Last:311.84)

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The 314.28 target drum-rolled here earlier looks like a logical spot for the rally to fail. However, if buyers should exceed it intraday by more than 0.30 or so — or better yet, close above it — use the 319.92 target shown in the monthly chart (inset) as a minimum price objective. Both of these hidden Pivot resistances are sufficiently clear and compelling that I’ll be surprised if AAPL ignores them. A small speculative position in sub-$1 puts with 7-12 days left on them would be appropriate at either number, but don’t risk more than you can afford to lose painlessly. If they double in value, cash out half and save the rest. _______ UPDATE (Jan 13, 2:36 p.m. EST):  With a high so far today at 314.90, AAPL has traded sufficiently above the 314.28 target that I’m shifting my focus — and the possibility of getting short — to the 319.92 target.  [Late-breaking note: AAPL eventually traded as high as 317.07. Plan B remains viable.] _______ UPDATE (Jan 14, 9:59 p.m.): The stock climbed to 318.80 overnight but fell too sharply by the opening to allow us to squeeze off a shot. The off-hours high may turn out to have been the important top we’d anticipated, but since the trade was nearly impossible to have executed satisfactorily, I am not establishing a tracking position.

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