Apple Stock Worries
Or – An apple a day, may not be so good for you…
All advances come to an end. Eventually. Even Apple’s… I’m not saying I’m an Apple bear – but there are some similarities between the current move in Apple and other high flyers. Let’s take a look at GOOG.
Now these charts are big, but they’re worth taking a look at. So click on the link to take a closer look.
In this chart of GOOG as it made a very similar run, it peaked out and reversed 50% of the advance before consolidating for several months and breaking down further. I’m not saying that will happen here, but let’s take a look at the current period for Apple:
Both stocks made a significant advance off the 200 day moving average – went parabolic (relatively – this may be a price scale effect as well).
Combine this with our forecast of a top in the maket this Friday, and we’re looking for the “Apple Correction”.
If you remember last year, on CNBC all they talked about was the law of large numbers holding AAPL back. Obviously that wasn’t the case.
As a stock climbs to these heights, the parabolic move is like running on a treadmill and the incline going almost verticle. You can’t run for too long without having to slow down or stop and take a rest. I just hope Apple doesn’t fall off the treadmill.