Apple Is Lining Up in the Short Sellers Crosshairs

I got exactly Apple

exactly where I want to see it going into its Oct 18 earnings report. The risk is that analysts's are overestimating Apple's actual earnings. If the earnings forecast for Apple is too high on Monday Oct 18, investors will be at risk of a very painful price shock to the downside on Tuesday Oct 19. The behavioral correlation model that I spotted weeks ago implies Apple will set a primary high on Wednesday Oct 13 in the 303-313 price zone. Wednesday Oct 13 will be the morning after Intel

reports earnings and after the release of the Sept 21 FOMC minutes on Tuesday Oct 12. The behavioral model shows that Apples price behavior going into Oct 13 is strongly correlated to the price behavior going into the Dec 26 high. Apple's Final Leg up to the Dec 26 2007 High

The pattern to the final leg up that you want to focus most closely begins from the Nov 12 2007 low, the Dec 10 07 high and the Dec 18 07 low. Fast forward to 2010, and you will find that exact same topping pattern repeating from the August 27 2010 low, the Sept 27 2010 high and the Oct 4 2010 low. All the time and price models off these high and pivots point to Apple potentially topping on Wednesday Oct 13, 2010 between 303-313. Apple Going into Oct 13 2010

It is not incidental that the morning of Wednesday Oct 13 follows the release of the Sept 21 fomc minutes and Intel's earnings on the afternoon of Tuesday Oct 12. The events on Oct 12 are what should push Apple above 300. Investors want 300. They can almost taste it and certainly can smell it. There is very little doubt these investors will be denied 300+. But as the old saw on Wall Street goes, “You got to feed the ducks when they are quacking. When the ducks are quacking above 300, short sellers will aim and shoot with prejudice.