The ‘mechanical’ short I mentioned here last week came home to roost with a pop through the green line (x=193.54) on Monday. OE (Option Experiment) participants already hold a small bearish position in the form of a vertical put spread, but it expires on Friday and won’t come alive unless the stock tanks $10. That’s hardly impossible, but I was reluctant to open a new front ahead of the weekend with an additional position. We should trade with a bearish bias because of the ‘mechanical’ signal, so stay tuned to the chat room and your email notifications if you want to keep apprised. My strong gut feeling is that AAPL is much too hired to hoist itself above the 199.62 point ‘C’ high of the reverse pattern shown without pulling back first, possibly sharply.
AAPL – Apple Computer (Last:192.42)