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A key resistance line has been in play, since Apple reached $12 per share back in 1995. Each time this line has come into play, Apple and the S&P 500 have backed off in price for a while.
For 17 years Apple has paused at this line. With some markets facing resistance right now, how Apple handles this line could well influence the 500 index, Again!
I think the entire stock market will go up because it’s an election year. I think it will reach a point when it will start down. We are buying stocks at today’s dollars. After the election or in the next 2 to 5 years our dollars are going to be worth less and less.
As seen many times before, there comes a time when resistance lines convert to support lines. We are seeing this in Apple now and it will only get more pronounced as those who do not yet own AAPL jump on the bandwagon. If the stock splits (say 10-1), it will only serve to accelerate this outcome as a move from $51 to $60 ($600 Pre-split) could occur quite quickly…
Technicals are going to cap this bubble.
If we’ve learned nothing else in the last 10 years. What goes up eventually (or sooner) comes down. I’m cautious about how much further Apple can go.
Why not consider this is an election year, that the new Corporatocracy can spend for with abandon, not even being
audited by the governing bodies, as the constitution has been
largely suspended in those areas. The malaise of a poorly
governed nation will create the largest spending for an election
in our history. Most boats will rise in the over stimulated
environment, where fiscal conservatism has been dead since
Bill Clinton left office. Until we change are attitudes, anything goes, for a likely good stock investor year for 2012, but more
Every time people (especially analysts and so-called professionals) claim that something is going to the moon, they’re dead wrong. Analysts should be used as a contrarian indicator, as well as market sentiment when it’s leaning so heavily to one side. The fundamentals of the company mean nothing to me if they don’t pay a dividend. If they make billions of dollars, but don’t pay a dividend, then who cares that they made billions of dollars? A stock that doesn’t pay dividends is, in all actuality, worthless, because to make any money off of it, you have to sell it, which makes the price only worth what others are willing to pay, not based on any intrinsic value of the company at all.
Betting on Apple to hit $540 within a month.
Too late. AAPL already left $495 in the dust last week when it exploded to $525. It then proceeded to retest $495 and closed strong in the low $500’s on Friday. I believe your question “Can Apple get this 17-year line to fail?” has been decidedly answered…
Important line to keep in mind, but at PE of 10 it is still hard to. Argue against. Especially with new iPad coming next month and plenty of room in consumer electronics with Apple TV and home sound systems, etc. interesting to see how windows 8 fares later this year. Maybe take some shine off the Apple?
Geoff check their last blowout earnings report.
Call me a crazy old fool but I suspect that Apple is now running on adrenalin alone now that Jobs has passed on. It has some spectacularly good products just as many companies have had over the years, but the speed of change is now out of control and the chances of Apple staying ahead of the wave for much longer are not that great. The average life span of a corporation is now only 15 years as against 75+ years when I started working 45 years ago.
Expect the real price to correct soon.
Please remember that I have not trained as an economist, just as an observer.
Greg… Sounds like their is plenty of buyers of this awesome company!
With Barrons covers this week suggesting the Dow is going to 15,000 soon, Apple should at least hit $1,000…so much for the 17-year resistance line!
Up, up and away!!!!
Nice chart. You seem the only person on the web or tv to urge a bit of caution on this at $500. Must mean something.