[click images to enlarge] This call was originally made in an article I published on TheStreet.com, and here is the call on this website. But since we are near the bottom call, I want to reiterate it so people can evaluate the analysis. Also, I want to show additional information and my AAPL Auto-Trader.
If you are a student of Dow Theory, have a solid understanding of Fibonacci ratios and Elliott Wave principles, then the price action of Apple over the past 9 months isn’t so surprising. In fact it is exactly as one should expect.
So, in the same manner that I called the bottom of the S&P in 2009 to the dollar, that fateful price of 666, a call made a full 5 months prior (November 10, 2008), I’m going to call the bottom of Apple in the spring of 2013 using similar methods.
Price action today was ferocious with Apple breaching 400 for the first time in over a year. Also notice how everything is converging on 390. Very interesting.
Touchdown – everything is trending and converging on 390
Here is a potential options trade that can be executed ideally at or below 390, but can be quite effective entering the trade at 400 as well. You’ll just have a little more premium to cover.
AAPL Double Calendar Diagonal
Tell me, what do you think?
