Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Computer (AAPL): Analysis and Forecasting -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (431)	8/21/1998 8:30:00 PM
From: High Grader	Respond to of 692

Jon: There is a method called the maximum pain analysis, that works on the theory that as most options expire worthless, the price where the most money in options will be lost is the price to which a stock will go on the day options expire. There is an on-going debate about it on the XAU thread with a web page to visit. ez-pnf.com It may help answer the questions that have been asked about options expiring. Some good thinking there. Apple had a wild ride today. It has dropped with a nice 5 wave down pattern visible on the 30 minute quote.com chart, hit 39 and then bounced up to 43 9/16. A correction that starts with an "a" wave that has 5 subwaves like this one tends to form a zig zag with wave "a" down for 5 waves, "b" up (often difficult to count the waves in "b"), and then" c" down with 5 waves of its own to the level of "a", or slightly lower, which could still catch the 38.25 Fibonacci point. However, the wild move today is forming another flag on the 30 minute chart, and flags are very bullish. If the price goes above 43.75 Apple is moving into new territory and that would probably be it for any correction. Could the selling you mentioned possibly happen Monday? That might be enough to cause the" c" wave and get us the wave 4 bottom that the Fibonacci levels projected. At this point the jury is definitely out. The move up today was very strong and has me worried. Many thanks to those of you who have made kind comments. Please remember that any string of predictions will sooner or later have a bad one. I am posting information for discussion purposes and hope people do their own homework. I have a lot of respect for the Prognosis software I use, but my understanding of the Elliott Wave is not complete and a few good calls don't mean the next one is going to be good as well. Be cautious in all trades.