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Apple Inc Is a No Go For The Retail Investor
When a love affair breaks up it's hard to stay away. Let's face it many consumers are still in love with Apple Inc stock. However it will be a mistake to re start the investment program until some clear price and volume relationships appear.
At the moment price has fallen from $700 to $450 (35.7%) and who is to say that it has stopped falling. The Richard Wyckoff law of effort vs result is very much in play with Apple Inc. Price is falling with high volume therefore effort (volume) is being reward by a good result (price falling 37.5%). Thus until price falling slows and stops on very high volume selling will persist and the retail investor should sit it out until a Wyckoff accumulation base forms.
The retail investor should stay away until:
1) Richard Wyckoff Efforts vs Result stops working so well.
2) Richard Wyckoff accumulation base and a sign of strength are present.
An example of this is the price and volume action between June 2008 and March 2009.
The Apple Inc chart...