Elliott Wave InternationalmyEWISocioniomics.Net
Home > Stocks
The Apple of the Stock Market's Eye: Just How High is High?
Everyone loves Apple shares, but for how long?
By Bob Stokes
Fri, 09 Mar 2012 17:45:00 ET
Add to Facebook Add to Twitter Email to a friend Printer Friendly Get the RSS feed Add to more social media services
Get investable insights sent to your inbox at least once a week – for free. Challenge the way you think about investing with The EWI Independent. Privacy

Shortly after Apple Corp. co-founder Steve Jobs passed away, Robert Prechter wrote this in the September Elliott Wave Theorist:
 
"What this country needs is more Jobs--Steve Jobs."
 
The classic story of a garage start-up indeed became one of the most innovative and respected companies in the world. Along the way, the firm Steve Jobs co-founded also provided employment to tens of thousands of people.
 
Since the lows of the financial crisis in 2009, this respect has translated into almost a seven-fold increase in Apple shares. Last year, Apple surpassed Exxon to become the biggest company in the world measured by market capitalization.
 
And the company has not looked back since. The Wall Street Journal online (2/29) reported "Apple's market cap shoots above $500 billion."
 
Even after this big run, Apple co-founder Steve Wozniak told CNBC (3/1):
 
 "...people talk about $1,000 stock price...I actually believe that."
 
He's not alone. A regular Marketwatch commentator mentioned that very price target just today. Here's the simple headline for his March 9 article "Apple heading to $1,000."
 
Apple is trading at $545.
 
Wozniak might be right. What seems like a high share price now might be considered a low price later. On the other hand, today's sellers might turn out to be right.
 
The point is this: Excitement over Apple shares has coincided with a stock market rally that turned three years old today, March 9.
 
A Yahoo! Finance headline (2/15) reads "Applemania and Stockcraze are Back..."
 
Apple shares recently went up 17 days out of 20.
 
In years past, mutual fund managers could do no wrong if they held boat loads of IBM shares, even if IBM had taken a tumble. Today, what money manager would want to be caught without Apple shares?
 
Yet the question becomes, who is left to buy?
 
Our March 7 Short Term Update provides a chart and accompanying commentary of Apple. At the bottom of that chart, there's an indicator that's most revealing about the strength of Apple's recent run-up. 

Just below that chart of Apple are two charts in different time frames of the NASDAQ 100.

Plus, our March 9 Short Term Update gives you yet more insights into what Apple's price action may mean just ahead. 

When you see the charts and absorb the analysis in both issues, you're going to get insights that could be valuable to you now. 
The Financial Forecast Service delivers the most insightful market analysis you can buy - period

Your risk-free subscription saves you 24% and gets you instant online access to:

1. Short Term Update (Mon, Wed, Fri)
You get latest forecasts 3 times a week, after the close.
 
2. Elliott Wave Financial Forecast (Monthly)
Tracks intermediate-term patterns in U.S. markets.
 
3. Elliott Wave Theorist (Monthly)
Prechter's cutting-edge view into when, where, and why the waves are unfolding.
 
Plus, Subscriber-Only Extras -- FREE
Advanced Elliott wave tutorial, classic EWI reports, market update videos, Message Board Q&As, educational tools, and more. Best of all, it's completely free. 

Tags: herding, investor psychology, Short Term Update, steve jobs, Traders
Rating: - based on [32 rating(s)]
Rate this content:
  
 
EWI's Event Calendar
May 13-16     

Las Vegas Money Show
July 10-13       

Freedom Fest Conference


Stay Ahead of the Trend in U.S. Stocks

FFSEWI's Financial Forecast Service equips you to think, trade and invest independently from the crowd. Here's what you'll get, risk-free:
  • Short Term Update -- Intensive forecasts and analysis 3x/week for U.S. stocks, gold, silver, bonds and the U.S. dollar.
  • Financial Forecast -- In-depth, intermediate-term perspective on U.S. stocks, gold, silver, bonds and the U.S. dollar.
  • Theorist -- Bob Prechter's monthly big-picture insights.
Put the Financial Forecast Service on your screen in minutes, risk-free>>

Most ReadHighest Rated
Free Video Course
Learn the Why, What and How of Elliott Wave Analysis

Financial media use news and economic events to explain market moves. Steer clear of this misguided approach. Take part in the Elliott Wave Crash Course to learn what really moves the markets.


The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.