If you take the time to go back and look at the 1987 stock market rally and crash, then you will see that the current drop into the low is the equivalent to the October bottom in AAPL shares. The next important low came on Dec 4, 1987 and was a lower low, which I have labeled here for AAPL .
The general euphoria that accompanied the peak in AAPL shares is so similar to me to the 1987 peak in stocks and the subsequent price action from that time is also tracing out similar movements. I hope we can profit from history and the patterns of human behavior that cause patterns to repeat themselves.
Good fortune to you. Risk 20 points when taking short positions. And risk 20 points when taking long positions. Donate 10% of your gross profits to your favorite charity.
Tim 12:39AM EST Tuesday, Feb 12, 2013
It looks like the action to right now is presenting us with a low-risk buy entry here with 60-80 points of upside versus only about 20-30 points of downside risk.