My early November post drew a line in the sand at around 1340 plus or minus a few points. If you were aggressive you could have tried to catch that knife at 1384 which was the first Fibonacci retrace at 38.2%. Unfortunately, that first level left many with a few cuts I 'm sure. If you obeyed your stops, you were not left with stumps albeit a bruised ego.
The next Fibonacci level of 61.8% seems to have done the trick last week. If you eased into the market, you were pleasantly surprised today when it gaped up 10 handles and continued on it's merry way closing up almost 2%. That was quite a gain so if we can begin metering this Holiday rally it would give us a more sustainable up-trend. The main trick to knife catching is obeying your stop loss price so you have enough fingers to attempt the following catch.
The only fly in the ointment is if we get some nasty macro news like the middle east getting out of hand or the fecal cliff discussions turning south. Then this could be a dead cat bounce and the O'Neil methodology about waiting four days after the first serious up day, like last friday, would prove itself yet again. On the other hand you would have possibly missed a $30+ gain in $AAPL today.
There is a funny image of a "Dead Cat Bounce" at
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