Apple’s reversal yesterday was quite nasty, indicative of a possible parabolic blowoff.  There are good arguments pro and con, some of which have been made here before. On the negative side, competitors are challenging Apple’s dominance on all fronts as copycats continually improve their hardware and music migrates from hard drive devices like iPod into the cloud.

But what is most bullish about Apple is that it is one of a relative handful of big companies perceived as doing just about everything right.  This means the stock is a must-own for institutional portfolio managers, none of whom is keen on being the first to downgrade the stock.  My gut feeling is that AAPL has not yet peaked but that the manic rally of 2012 could take three to six months to correct.  Notice in the chart that although yesterday’s spike high at 526.29 occurred just $3 above a ‘D’ target, there is still room to hit a higher ‘D’ at 554.46 by ratcheting up to a new B-C pairing.