We’ve been using a 100.99 target for this selloff, but the 98.65 pivot shown in the new chart should be considered as an alternative because the first bounce from the pattern’s p=110.68 was fairly precise. Either will work in conjunction with the Sep 25 95/100/105 call butterfly I recommended buying last week for 0.30. The stock’s descent since then has pushed up the value of the spread, and you’d be doing well now to buy it for around 0.80. If anyone got aboard last week for less than 0.70, please let me know and I’ll establish a tracking position. Note to Pivoteers: If the point ‘A’ high shown in the chart had greater separation from the spiky ‘marquee’ high, this would be the kind of gnarly pattern whose target could not fail to provide a tradeable bounce. As it stands, the pattern generated a profitable ‘mechanical’ short last Tuesday that is still in effect. Bottom-fishing at p2=104.66 is recommended only to those of you who know how to tightly control the entry risk with an rABC set-up. ______ UPDATE (Sep 21, 8:36 p.m.): We’ll spectate for now, since AAPL has shorts by the scrota again. An upthrust touching 112.20 would be warning of a squeeze capable of doing quite a bit more damage to bears. The pros are working the stock hard, and the post-split squeeze to $138, followed by an engineered plunge to a so-far low of 103.11, ranks as one of the most lucrative criminal scores of all time. This is a multi-trillion dollar stock, remember.
AAPL – Apple Computer (Last:110.12)