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Ripe for the Picking or Rotten to the Core

By: Joseph Russo | Friday, December 7, 2012

Frankly, we do not have a fundamental storyline answer to the above nor could we care any less about Apple, its prospects, or the related fundamentals upon which its story gains legend in the mainstream media.

From our perspective, all that matters is the entry and exit strategies for each of the three timeframes in which we expose ourselves to its nominal price and the associated risks involved with prudently positioning trades that have the highest probability of capitalizing effectually on Apples fluctuating value.

Success - Apple Mid-Level Accounts 10-26-12

Several weeks ago when Apple still traded above 600, we warned that a plausible top of major import might have occurred at the 705 all time high.

We also provided readers with a specific contingency instruction that would turn Apple back to the bullish side of the equation. You can refer to the entire article here.

The first chart illustrates Apple's failed attempt to recover, reach, or maintain trade above our bullish contingency price, which we stated was to reside at trade and closes above 662.

In just over one month, from our Mid-Level-Account short entry at $609 on October 26, we have open profits in excess of 11%. The Mid-Level trade signal remains short with an ancillary revised bullish contingency for sustained trade and closes above 630.

Fueling the diversity and depth of our success, the next chart illustrates the efficacy of engagement via our short-term trading strategy. Reversing long for Apples attempted recovery rally, and booking more than an 11% profit in a months' time, we shifted Short-Term Trading Accounts long from 559.21 on November 11.

On December 4th, just one day prior to Apple's 7% one-day plunge, we booked another 2.9% in profits and reversed short at 575.44. After one day in the latest trade, we have in excess of 6% in open profit.

Who is guiding your portfolio?

Apple Short-Term Trading Account Chart

Although adequately hedged shorter-term, longer-term we remain bullish and up more than 330% despite giving back open profits from peak equity. Our Long-Term Investment Accounts remain long Apple from a price of 122 via positions established on May 1, 2009.

Do you want to hold-hands and hear a good storyline - or do you want to make money?

We will humbly bow our heads in awe to CNBC's fast-money crew, Jim Cramer, or any other advisory service or hedge fund who can illustrate that they have guided their audience/clients exposure to Apple more profitably than we have across every time horizon.

The balance of our ongoing efforts relative to our individual stock portfolio performance is presented in the spreadsheet below the long-term Apple chart.

Technical Analysis On-Demand:

For those who seek comprehensive coverage of this caliber, Elliott Wave Technology provides custom on-demand technical analysis for Stocks, ETF's, Futures, and Mutual Funds. If interested in obtaining analysis for any of your portfolio holdings, you may obtain a sample and learn more about this service by clicking here. Otherwise, if you simply prefer making money to holding hands or hearing stories, you may wish to consider following our entire portfolio at the Chart-Cast Pilot..

Apple Spread table

Tangible Assurance Worksheet


Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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