Last week while twiddling our thumbs and indulging in occasional fits of rage at Congress — delay the scoundrels getting out of town at Washington airport and they can modify the sequester in milliseconds– starve a few kids, no problem –we amused ourselves by closing our metals shorts and peeling off more of our hedge. We gave back most of the easy profits while waiting patiently to see if the plunge would continue. Comme si, come ça. Meanwhile it appears that the SPX has fulfilled the alpha-beta-etc pattern, in addition to making a new high. While this awaits confirmation — for the adding of new units to our position — it signals that the uptrend is alive and well. Readers who did as we advised and sat on their hands through the reaction are once again vindicated. Note the new Basing Point and raised stop.
The rank foolishness in the analytical and media community about Apple never ceases to astound us. Some day we’re going to do a psychology book about journalistic fecklessness. For now this looks like the bottom in Apple. The alpha-beta pattern appears on the way to fulfillment and more importantly the long term trendline is breaking. Confirmation will occur when the recent wave highs are taken out. The stop is 3% under the recent low. Remember. An Apple a day keeps Microsoft away.