AAPL – Apple Computer (Last:140.82)

AAPL, the crown jewel of the institutional investment world, has lost more than 20% of its value since January. Last week it signaled still lower lows down the road when it deeply pierced a case-hardened floor of Hidden Pivot support at 146.77. But how far down the road? My hunch is that last week’s bounce on Thursday from a bombed-out bottom at 138.80 will prove to be the start of the most powerful short-squeeze since January. As such, and according to design, it will devastate bears who have grown complacent betting against the biggest portfolio managers in the world. The fact that the squeeze began off a bottom on Thursday, giving the stock a running start for a psychotic leap into freaky Friday (the 13th, no less), is evidence that DaBoyz are taking no chances. They do not want this rally to flame out quickly like all the others that nipped at shorts’ privates in April. The stock will still need to take quite a leap, to 156.75, merely to generate an impulsive leg on the hourly chart. Expect DaBoyz to succeed at this project — the earlier in the week the better for them. _______ UPDATE (May 18, 6:34 p.m.): The small dip below the red line has shortened the odds of a further fall to D=131.81 of this pattern. Also, a rally to x=145.27 would trigger a ‘mechanical’ short, stop 149.76. Check the chat room for for timely guidance, since the appeal of this trade will depend on how and what time of day ‘x’ is hit.