Apple Inc Buying Climax is Now Extreme
The price of Apple Inc has been exploding higher. The folks on the buying desks have forgotten that markets do not move in straight lines they zig zag. The AAPL price extension is at levels where any further buying is just ridiculous, as lower prices in the next few days or weeks is almost a sure thing.
Previous Post: Apple Inc buying climax signals sideways action
One must be careful to not to upset the massive Apple Inc fan club, as folks who have been buying (with no margin) have not suffered a correction greater than 10% (since the March 2009 lows). However the expected minor correction in AAPL is not a concern, it is what happens to the SP500 when holders of Apple Inc shares start selling. Whenever AAPL prices get this far extended and selling starts the wider market has the more interesting story and hence suffer the more serious correction.
Point: When AAPL is sold down, the rest of the SP500 is most likely sold off at least x3 the strength. (Relative strength reversed engineered)