Of technical interst, the v-bottom, or non-pattern bottom is coming much in vogue. We saw it in March of 09 and it appears that we are seeing it here in …yes… it’s Apple. All that bull dung you saw about Apple in the media was carefully calculated to make weak holders cough up their stock. You might even call it a misinformation campaign if the media were sufficiently intelligent to mount one. During this time we have repeatedly poured scorn and sarcasm on financial idiots. Now we’re taking our revenge.
We are taking a small (very small) position in Apple, in contravention to our usual policy of trading only ETFs. The PnF chart as seen above looks for a target of 572. We don’t know about the target, but the analysis agrees with our reading of the chart which says that the A-B-gamma-zeta pattern is fulfilled.
In light of the market’s doing everything it can to cause pain and rage we expect this rocket to roar off leaving the general investors gnashing their teeth, while the hedge funds chortle away at their ability to move markets.
For the record: closed shorts in TLT and the euro. Love ’em and leave ’em quickly.