The bull-market pattern shown is so gnarly that it seems likely to work. By ‘work’, I mean come close to calling the top in AAPL’s lunatic-powered bull market. The 319.92 target was missed by just $1.12 earlier this week, and it remains to be seen whether the stock will be short-squeezed into a head-fake that comes even closer to the target before wild-eyed bulls get their comeuppance. In the meantime, I will provide tracking guidance, although not an official position, for at least one subscriber who managed to get short near the top. He goes by the handle ‘TraderMike’ in the chat room, and he has always lived up to that nickname. He owns 20 June 250 puts for 3.05. For now, offer 20 June 245 puts short against them for 3.55, good-till-canceled. ______ UPDATE (Jan 22, 5:02 p.m.): AAPL has been playing toe-sies with my target since January 13 and today inched slightly above yesterday’s high, hitting 319.99. I’ll avert my eyes for now, but if and when it blows higher use this pattern, with a 336.35 target, to tame the beast and make some money at it.
AAPL – Apple Computer (Last:317.50)