The next couple of months are going to be awesome. The only things holding up the market were Bernanke and Apple. Bernanke has spent his last bullet. By announcing endless MBS purchases, the Feds have no element of surprise. When the bad US economic news keeps rolling in, the market is going to tank. It may take a while to manifest but it is just a matter of time.
I've told you this before, Apple's going to bring down the market. The iPhone market is approaching maturity. The only thing supporting their growth has been the expansion to new carriers but now the iPhone is already available on most networks. Expansion to the china market was one of their main growth factors but even this is slowing down. During the last earning report, the revenue from china dropped which is a sure sign of seasonality and maturation. Just look up iPhone sales trends on at&t and Verizon. Almost everyone who wants an iPhone in the US has one.
The iPhone 5 announcement was just pathetic. What were the main new features? 5 inch screen? LTE? Other Android phones already carry these feature. Apple is just playing catch up. There is nothing significant to distinguish the iPhone from android phones from a user interface point of view.
Sure, for the first month, there might be reports of strong iPhone sales. However, when the shipping times start dropping to 2-3 days, people are really going to wonder if the initial demand was coming mainly from the replacement market.
My recommendation is to wait a month for the Bernanke and iPhone euphoria to dwindle and then open massive short positions.
Is this another fake JK, or did he get a new account out of shame with his poor predictions for Apple? In the low 400s by Labor Day, worth only 200s, as you will all recall. But oddly, no technical analysis (tea leaf reading) in this one...
I am entering a short position here - Double top in 2012, RSI at 70, Insiders Selling, P/E 100+, No Major outlook for EPS growth to turn the P/E lower, 30% stock increase in 45 days. Cramer's pump brought the share price up, now the major holders can start taking profits. 5% upside, 30% downside.
However, with Institutions holding a large portion of the shares, it may help provide support. Unless they are going to start selling also, then watch out!
AAPL isn't overvalued, not even close, the iphone5 is selling out in record times. Short APPL and you will end up a broke dick dog. And shorting CRM hasn't been profitable either, you shorts are owned.