Apple Bubble?

https://lh4.googleusercontent.com/-R...h%25202012.jpg

Tim Cook is selling Apple shares worth $11.1 million. Time to take profit and run? Sometimes the insiders such as the directors and key personnel provide a good insight on where they think the company is going...

Bear in mind $11.1 million is nothing, he probably just wanted to buy something nice for himself. he has at least $400Mn worth of AAPL so it really isn't significant.

However on the side of whether its a bubble, it sure looks like techs of 2001.

Definitely over priced, but bubble won't burst anytime soon.

and i thought the bubble had burst during last week's mini flash crash haha

we shall see how far up this will go

I wise man once told me ''the trend is your friend, until it bends''. I am not looking at Apple and I don't trade. But I still follow it due to its weight on the industry and technology sector as a whole. I have a simple rule of thumb, anything that goes parabolic like that I continue to treat as a long, as long as it doesn't close below its daily 20 SMA.

I'm trading the SMA as well among other factors. Based on your experience, would a higher SMA ie above 20 be better to cancel out the whipsaws?

As I wrote in my post, I don't trade Apple. I don't know how you use your moving average cause I use them to help me identify the environment of the stock. AAPL right now is in a parabolic mode where its rising daily. Trying to daytrade this stock would be wiser, however, daytrading a $606 stock that looks pretty over extended is something thats abit too difficult for me. Any sell off here would likely be sharp, so swing trading it (holding it for more than a day) would also be very difficult as you can easily get slapped down. Thats why I prefer to step aside at these levels. I find better r/r trades in other stocks.

When I wrote the 20 SMA above, what I meant was that if AAPL closed below the 20 SMA then that would tell me that the environment has changed. Sellers have come into the market. Right now that doesnt seem to be the case.

AAPL is a mega bubble I think. They are like a cult and Jobbs was their martyr.

Watch it plummet back down to around $200 after the next credit crisis.

I think Apple after Steve's death is a different story, RIP, we should be more careful, bubble also explodes when there is doubt more than when there is a problem, wither we have a problem or not is a different story, I have not seen anything from Apple that proves they will succeed and carry the legacy, too early to judge anyway.

I don't see any strength in AAPL's trend in my stock screener and backtester tools. The stock is too expensive to buy now. Sooner or later it should drop down. Current correction is the same as for S&P 500. Really good stocks continue to rise or stay flat even when entire market falls. Stock backtest shows that AAPL will join such flat stocks MSFT, GOOG, etc.

there should be a good correction in the apple stock and after that im looking forward for a good trend upward.

https://lh6.googleusercontent.com/-S.../s640/AAPL.jpg

Based on COT proxy, the commercials are still net short on this stock

yeah, I think we'll see a double top on Apple

He couldn't just sit on top of those fat shares his whole life. Sometimes you gotta cash it in and buy something nice for yourself.

I was just listening to an analyst talk about how if you strip the cash off their balance sheet, they are only trading at 10-11x earnings. Which is historically quite low considering their magnitude and continue to produce innovative products.

I'm tempted to add some at $600 on this last dip... that high psychological share price is just tough to swallow.

Its clear that there is not lot of space for another significant grow, thats why i stopped to watch apple shares. Im looking for good companies for low price .. or stable divident payers

cough* look into Verizon* cough*