Tuesday, December 14, 2010

AAPL Ripe For A Fall

AAPL appears to have completed 5 waves up from the August low.  If the current impulse is also completing intermediate wave (5), then the coming correction in AAPL could be severe, but at a minimum it should retest the April and July highs around $275.  The action in AAPL just adds to the evidence that a top could be coming soon.

For those with an interest in astrology and the stock market, Mercury went retrograde on Saturday December 11.  It will go direct again on Thursday December 30.  It has been my experience that one of three things will occur when Mercury goes retrograde:  1) nothing happens as the existing trend remains in force, 2) the market sells off on the retrograde, reverses at 9 calendar days in +/-, and then sells off again into the date it goes direct, or 3) the trend continues until 9 calendar days in +/-, and then the market sells off until the end of the retrograde period.  A turn at 9 days in occurs quite often and would correspond to Monday December 20.  It looks like things could be lining up for a turn around December 20/21.

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