In dollar terms, the nuclear short squeeze in AAPL that finished out the week was the most powerful and consequential in history. Friday’s detonation catapulted Apple ahead of Aramco as the most valuable company in the world. That’s not bad for a consumer-goods manufacturer whose main source of revenue is an overpriced smartphone. The rally in the stock amounted to a 10% gain, pushing the Cupertino firm’s market cap to $1.817 trillion. That’s surely a record for financial markets on this planet, but for all we know it could have set a record for the galaxy. The sum is equal to 30 times projected sales, a bit rich considering much of the economic world has entered a depression or is close to one. For those interested in knowing where the stock is headed next, it looks all but certain to achieve a minimum 456.19, the Hidden Pivot target shown in the chart. ______ UPDATE (Aug 6, 11:12 pm. ET): The vertical pitch of Apple’s rally is conceivably the stupidest thinggg happening in the galaxy right now, an orgy of greed and hubris that should embarrass not only Wall Street, but all of civilization. However, the reason for it is not hard to fathom: Since every $1 rise in the price of the stock adds $4 billion of ‘wealth’ to the financial system, it becomes possible for just this one stock to postpone the collapse of America’s public and private pension systems. This looming catastrophe is inevitable and will start with the bankruptcy of Illinois, quickly metastasizing into more than two dozen other states. All of them would become basket cases if AAPL were eventually to fall below $100, which is why it absolutely will.
AAPL – Apple Computer (Last:455.81)
