Has Apple's bubble burst?

TL;DR

Apple's stock has been on a steep uptrend, but there are signs of a potential correction.

Transcript

hello it's john burford with chart of the week for monday the 10th of august and i'm covering apple this time it's been an incredible run has it not uh for the apple of the eye of tech investors this is the monthly chart going all the way back to around about 2004 when it was a glint in the eye for most investors i'm quite sure um and since then it... Read More

Key Insights

• 📈 Apple's stock has been on an impressive upward trend since the Corona crash low.
• 🙊 The daily chart indicates a possible temporary peak, signaling a correction in the near future.
• 👋 The monthly chart shows an impulsive pattern with five waves, suggesting a three-wave correction.
• 💀 Comparisons to Isaac Newton's experience with the South Sea Bubble highlight the danger of staying invested in a market during a mania.
• 🥹 Investors should consider the high risk involved in holding Apple's shares at this point.
• ❓ A correction would not be surprising given the significant rally in Apple's stock price.
• 🍂 Timing the market is challenging, and even geniuses like Isaac Newton have fallen victim to manias.

Questions & Answers

Q: How has Apple's stock performed recently?

Apple's stock has seen a significant increase, doubling in price within a few months after the Corona crash low.

Q: What does the daily chart suggest about the stock's current position?

The daily chart shows a possible fifth wave, indicating a potential temporary peak and a subsequent correction.

Q: How does the monthly chart reflect the overall pattern?

The monthly chart reveals an impulsive pattern with five waves, suggesting that a three-wave correction is likely.

Q: Can we expect Apple's stock to continue rising?

While there is potential for further growth, it is wise to be cautious as a correction seems probable based on the current charts.

Summary & Key Takeaways

• Apple's stock has experienced a rapid ascent since the Corona crash low, more than doubling in value within a few months.

• The daily chart shows a possible fifth wave and suggests a temporary peak, signaling a potential correction.

• The monthly chart reveals an impulsive pattern with five waves, indicating a likely three-wave correction.