AAPL remains on autopilot for a finishing stroke to at least 151.02, a target that has been theoretically in play since October 4. Apple shares were trading for around $141 then, about 7% below the recent high. The rally’s progress had been slow until a week ago, when back-to-back short-squeeze rallies did what mere bullish buying could never have accomplished. The artificially induced buying spasm penetrated deeply into layers of supply deposited over the summer. This is how the chimps who make their living going all-in with clients’ money work, lifting their offers when short-squeeze opportunities are at their ripest. Realize that it is the Titantc they are hoisting — the biggest company in the world, with a capitalization of $2.5 trillion. But the effort is worth it, since keeping just this one stock on an upward path has helped sustain the illusion of health in a thousand pension funds, including some of the very biggest. Looking just ahead, I’ll recommend reversing long positions at 151.02 with the purchase of a few put options. This is a speculative bet, so risk no more than you could comfortably lose on a a 20-to-1 horse. Concerning the supply zone from last summer, although AAPL has pushed through this landfill easily with its recent show of bravado, the stock could find itself bogged down there for months once it has completed the run-up to 151.02. Caveat emptor. ______ UPDATE (Oct 26, 8:45 p.m. ET): The stock fell nearly $2 after topping 18 cents (0.18%) from the 151.02 target. If you bought any put spreads as I advised in the chat room, please let me know so that I can determine whether to establish a tracking position. ______ UPDATE (Oct 28, 8:33 p.m.): AAPL’s lunatic leap through 151.02 was of course bullish and guarantees a test of September’s all-time high at 157.26. Because this elicited no comments in the chat room, I’ll be removing the stock from the always evolving list of touts shortly.
AAPL – Apple Computer (Last:152.48)