Mac, not Indy Mac

Action:

The chart above is that of Apple computers, of Mr. Cramer's last remaining horsemen fame. We love Cramer for his entertainment value of course, his picks nah! We believe a man does one thing best.

Anyways, this chart has been downtrending in a tradable $15 downward channel for the past 2 months. It has also "observed" its fibonacci retracement of 38%. The downward tilted channel is usually bullish. Furthermore, the longer the time the stocks stays in this tight channel, the more energy or bounce it gets when it breaks out. Right now, AAPL is at the brim and underneath its 50d.

Guess:

We believe that AAPL may break out of this channel to the upside. The stock looks well rested, and ready for a leap to 200.
Ofcourse, this theory is dependent on a confirmation of the rally today (July 8th). Ideally, we would like to see a pause day. Perhaps more bullish and preferable, would be a couple or more miniature sell days, of the chinese water torture variety. Often, it helps to think of the market like a marathon runner. We just witnessed a huge forward thrust. We need to rest, so that we can sustain our speed in the long term and not be just a shooting star.

We will load up on our longs SSO/UYG/QLD/AAPL etc on any small dips. Ofcourse, all bets are off if we sell off huge again.