Apple Shares Are Just Taking A Breather In An Incredible Uphill Climb

Was that the top in Apple?  Seriously doubt it,  but maybe in the very short-term, however.

The stock opened at its high and managed to trade just above $600 and then downhill  all day.  It has run too far too fast and needs some time  to consolidate, in our opinion.   We were lucky to get some out close to the top in the pre-market and now will wait for the stock to establish the lower end of, what we think, will be a short-term consolidation range with $600 as the upper bound.

We could be wrong and the market might just be repricing this beast to a new multiple in parabolic mode.

What we do know for certain, however,  is that bulls eat, bears eat, and pigs get slaughtered.  The hedge funds,  who are probably the largest holders of Apple en masse, not only understand this and also not afraid to act on the  axiom.

Also note in the chart below that almost every, albeit rare, long red candlestick since the beginning of the year has been followed by more selling the next day.

It’s been an incredible run, but now the time has come the (short) pause that refreshes.

AAPL daily share price

Photo: Global Macro Monitor

AAPL share price march 15

Photo: Global Macro Monitor

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