When, on July 2nd, we pointed toward a target low in AOL toward 10.41, we weren't quite sure how the market would reach that level. This was particularly the case given that we were already turning bullish (prematurely as it turned out) the biotech, and even the tech sectors, at the time.

Yet the Fibonacci rhythm of AOL on the weekly chart was clear. The then current price of $12.52 would somehow yield to a low nearer $10.41, and today -- a bit of unanticipated Armageddon in the Dow and S&P 500 in between -- that target was reached. As a matter of disclosure, we bought shares of AOL for our own account today.

The broader market indices certainly looked a bit scary in the a.m., but knowing AOL was reaching a major target, even if the world temporarily appeared to be melting, helped embolden us to do other selected equity buying as well. The subsequent market turnaround was swift enough, and took place within the right window of time, that we will largely forgive the morning downside overshoot.

Zooming into a 60-minute chart, the question now becomes where to sell AOL. Stop loss orders may obviously be left below Wednesday's low at $10.34 -- likely with some safety from election. And to the upside, we'd anticipate at least reaching $14.72, and with time, maybe even $21.33. At $14.72, if realized, this quick flip would represent a 41.4% gain. Even within a tough year, a cruel month, and a particularly scary day, such a potential trade reminds us of Warren Buffet's advice: Don't swing at every pitch, but be patient, and wait for a nice strike down the middle of the plate. We thought AOL represented such today.

Chart constructed using Advanced GET End-of-Day