Thursday, April 18, 2013

Apple revisited

Back in early March I posted "A deliberately provocative thought on Apple" (see here). It's interesting to see what has occurred in between then and now.

The chart clearly shows that the downtrend is still intact - and in fact briefly breached the $400 level yesterday. Clearly any attempt to pick the bottom of this move would have failed so far. It should also act as a reminder that, no matter how enthusiastic brokers may be over a stock, no matter how strong the fundamentals are perceived to be, by simply observing price and its trends, a chart will give you a loud signal as to when the trend has changed back to the upside, and when you should start to initiate long positions.

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