AAPL – Apple Computer (Last:309.25)

I would caution bulls against breaking out the bubbly merely because this gas-bag finally exceeded my 319.92 target after ten days of trying. In the first place, I’d stipulated that AAPL must close above that Hidden Pivot resistance for two consecutive days before we regard the 336.35 target as an odds-on bet. For two, Friday’s stall and $6 relapse began almost precisely at the 323.95 midpoint Hidden Pivot shown. That’s the most likely place for a trend failure to occur, and so the yellow flag is out, tempering our expectations of a surefire move to 336.35.  The pattern can still be used to trade the stock either bullishly or bearishly, but please note that AAPL would NOT become a mechanical buy on a pullback to x=316.25 because the C-D rally died well short of our sweet spot for this type of trade. _______ UPDATE (Jan 27, 9:42 p.m.): I’m tracking 20 June 250 puts @ 3.05 for a subscriber who used my 319.92 target to get short. I’ve recommended shorting 20 June 245 puts against them for $3.55, but you can go as low as 3.35, where they topped on Monday, if you please.

  • Robert Marshall January 27, 2020, 12:36 am

    Hey, Rick. I’m among the ordinary Joe’s who need a little help implementing your suggestion that, “The pattern can still be used to trade the stock either bullishly or bearishly…” I get what to do on the long side–which would take some guts (at this point) and patience. But, I’m not sure what exactly to do on the short side. Thanks.

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    This advice was geared to those who have taken my trading course, Robert. You can get help with such trades in the Trading Room, but the best path is to take the Hidden Pivot Webinar. It costs $1400, and you can sign up here: https://bit.ly/2RTHomr Otherwise, you can look for specific trades that I put out for novices from time to time.
    RA