Thursday, February 7, 2008

AAPL: The downward spiral through 112 to 91

As seen by the charts below our beloved AAPL is in a world of $@&^! And as the title of this posts suggests I believe we may see a brief pause at 112 and ultimately a completion of a poorly formed one year Head & Shoulders top.

Head - 205
Neckline - 150
Sholders - 125

And in this case the smelly armpit of 91 for a trough.

It may be safe to belly up to the trough and be Long Call Pigs for awhile when it finally reaches the low 90's. In the mean time I feel pretty confident we can ride PUTS and be short as long as tight stops are kept. Remember nothing goes straight up or down.






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