AAPL – Apple Computer (Last:143.79)

Last week’s low just pennies beneath my 134.59 target would be an unlikely place for a good bottom, as a glance at the chart suggests. The stock will want to test the June low at 129.04 to bolster confidence for the next significant bear rally. We’ll be on the alert to catch a ride north, but it’s liable to take work and patience, since AAPL could noodle around down there for days or even weeks, stopping out bulls with so many false starts that they’ll eventually give up. There’s $9 of potential downside to exploit along the way, but that too will require close monitoring of the lesser charts. A ‘voodoo’ number at 131.41 looks promising for catching a tradeable bounce, so be ready when AAPL gets there. ______ UPDATE (Oct 17, 9:05 p.m.): AAPL’s opportunistic leaps on the opening are by now so familiar that we should be shocked if DaBoyz ever attempt this money-saving trick with honest-to-goodness buying. Today’s headbutting precisely at p=142.74 confirmed the pattern and its target, 147.19. Consider it a done deal if buyer’s fist-pump their way past p, especially in the early going. An unexpected pullback to x=140.52, the green line, would trip an attractive ‘mechanical’ buy, stop 138.28. _______ UPDATE (Oct 18, 8:40 p.m.): The stock’s handlers  let go of the leash, but it only seemed like they’d lost control. AAPL finished with a riskless/costless gain, leaving a classic ‘mechanical’ buy at the green line. I must confess that I was elsewhere at the time.