Whatta guy! Nothing has happened to brighten the picture for Apple, but that hasn’t stopped it from reversing out of a bear market abyss with such force that you’d think Covid-induced nuttiness was rampaging again. You’ve got to hand it to the institutional chimpanzees who have never sold a single share of the stock since Steve Jobs resurrected the company. They’ve shown unflagging confidence and limitless patience since the Great Financial Crash of 2007-08, waiting this time for the perfect opportunity to trigger off a short squeeze menacing enough to turn bears into panic-stricken buyers. Realize that this is the biggest-cap stock in the world, and that every inch of the rally would ordinarily require trainloads of money, were it propelled by merely bullish buying. Shorts have done all the lifting, though, into supply lightened by greed; by large, airy gaps in supply at odd hours of the night; and by the misplaced confidence of widows, pensioners and hayseeds enticed by the last stock-split. From a technical standpoint, the 172.78 target shown makes a logical and compelling upside target. It should be shorted aggressively, especially if you’ve made money on the way up. This Hidden Pivot is close enough to January’s record high at 182.63 that its attainment would most surely get investors salivating over the prospect of another monster leg up for a bull market now in its 161st month. ______ UPDATE Aug 10, 8:15 p.m.): This short in AAPL is for entertainment only, since it already triggered at 168.93. It is similar to the trade I’ve suggested in ES, except that the price where I’d have anchored the ‘C’ high has already been exceeded. That makes it riskier than if we’d acted during the regular session. Theoretical entry risk is only about 40 cents per share nonetheless, with half to be covered at p=168.54 and the remainder held for a home run. ______ UPDATE (Aug 11, 5:20 p.m.): The strictly-for-fun short was a non-starter even though the scumballs who work AAPL for a living began the day with a bull-trap squeeze. What a stretch. I’ll be curious myself to see how they jack the stock to my 172.78 target, since maintaining high relative strength in a falling market takes lots of muscle.
AAPL – Apple Computer (Last:168.50)
