A major Gann retracement just occurred. The stock dipped from an all-time high of $705 down to $440 in just 4 months.
Clearly this was a major oversell due to Wall Street analysts being stupid and making crazy high expectations as they do every quarter for the last four quarters.
Okay so what does 2013 have in store for Apple's stock now?
Looking at this rationally this is a stock that should be in the $500 to $520 range the way it was before the earnings call last week. No reason for the dip into the $450 range the way the company's products are still selling at all-time high pace. So expect the next two weeks for Apple to bounce back into the $510 range.
Lower Wall Street analyst expectations for the next quarter and Apple should beat it to get the stock into the $560 range by May. Then the big news.....a deal will be struck with China Mobil. This will add some 250 millions new subscribers and iPhone buyers! Apple will have to accept lower margins but not by much and the stock will fly into the $610-$620 range as a result.
Okay now the clincher. Apple is going into the TV business. The is something I read about called the iPanel which should be coming out late in the 2013 year. It supposed to connect the TV (Apple TV) to various other mediums like the iPad and iPhone and basically will have any show on TV on demand for all Apple TV users. If this sells well it will revolutionize the way people watch television and boom....just like that the stock price will shoot up into the $760-$800 range.
Once again.....Apple will surprise.