If the rally hits the green line (x=169.59), it would set up a textbook ‘mechanical’ short, even though the trade might not feel so appealing at the time. It would come with the stock in the throes of a ballistic ascent fueled by increasingly panicky short-covering. Still, the success rate of ‘mechanical’ shorts at the green line following a dip into the void between p and p2 has been nothing short of remarkable — perhaps 80% or more. Success in this context means the short once initiated would deliver a gain of at least one full Hidden pivot level. With initial risk of about $2800 on four round lots, I’ll suggest using a ‘camouflage’ set-up to trigger the trade. For real-time guidance, tune in to the chat room if and when the stock gets within 1.00 point of the target. ______ UPDATE (Mar 1, 11:40 p.m. EST): If AAPL rallies to the green line, a short there has become less appealing because the stock will have done so following a three-day consolidation above the red line. The trade would still be do-able, but only if you can whittle down risk to a practical minimum with a ‘camouflage’ trigger. Stay tuned to the chat room and to ‘Notifications’ if you seek more-nuanced guidance in real time.
AAPL – Apple Computer (Last:163.17)