Another Apple crash and Warren Buffett’s cash

TL;DR

Apple's stock experienced a severe correction due to the corona crash but has since rallied, with a forecast of a big severe crash in wave three. Warren Buffett, despite publicly stating his dislike for cash, has been building up a massive cash pile.

Transcript

hello it's john burford with chart of the week for monday the 4th of may and i've got a lot to get through today i've got a couple of tidbits for you my main coverage though is of apple so here's the apple chart the apple tree i call it and this was my forecast on the february the 10th chart of the week where the price was just above the 320. i mad... Read More

Key Insights

• 😣 Apple's stock experienced a severe correction and rallied back up, following the forecast made in February by John Burford.
• ✋ The current rally in Apple and high-tech shares is driven by private investors, while institutions have been selling.
• 😃 An analysis suggests that a big severe crash in wave three is expected in Apple's stock.
• 😣 The FTSE chart shows a momentum divergence, indicating weakness and a possible severe decline in wave three.
• 💩 Warren Buffett has been accumulating a large cash pile, contrary to his public statements.
• 🔑 Investors should consider focusing on actions rather than words when evaluating investment strategies.
• 🎁 The current situation presents a buying opportunity for those who missed the initial rally in Apple's stock.

Questions & Answers

Q: What was John Burford's forecast for Apple's stock in February?

John Burford forecasted a target of $235 for Apple's stock, which it not only reached but also plunged beneath before sharply rallying back up.

Q: Who has been driving the current rally in Apple and high-tech shares?

Private investors, rather than institutions like hedge funds, have been the main drivers of the rally in Apple and high-tech shares.

Q: What is the forecast for Apple's stock in the future?

The forecast suggests that Apple's stock is currently in a wave two high before a big severe crash in wave three, which can be expected to take the stock below its current level.

Q: What is the significance of the momentum divergence in the FTSE chart?

The momentum divergence in the FTSE chart indicates a sign of weakness and suggests that the current rally is the second third wave before a severe decline in wave three.

Q: What has Warren Buffett's stance been on cash?

Warren Buffett has publicly expressed his dislike for holding cash and stated his intention to use it to purchase great companies at good valuations.

Q: Has Warren Buffett followed through with his intention to invest his cash?

No, despite his public statements, Warren Buffett has been accumulating a massive cash pile, which is even greater than Apple's.

Summary & Key Takeaways

• Apple's stock saw a severe correction after reaching a top of $320, followed by a sharp rally above the target area of $235.

• The current rally in Apple and high-tech shares is mainly fueled by private investors, while institutions have been net sellers.

• The forecast suggests that Apple's stock is at a wave two high and a big severe crash in wave three can be expected.

• Warren Buffett, despite his public statements, has been accumulating a larger cash pile than Apple's.