AAPL didn’t waste any time demonstrating why DaBoyz split it four-for-one, effective Monday morning. The stock was up a scandalously undeserved $6.18 at one point, or more than 5%, although the gain was not nearly as noticeable as it would have been prior to the split. The pre-split rise would have been $24.72, making it one of the most powerful rallies in recent memory. It won’t be remembered that way, however, since the $4.16 closing gain is just not a very impressive number. What is impressive is that it put about $70 billion more dollars into the financial ether, inflating pension and sovereign funds sufficiently to feed, house and clothe California’s six million retirees from now until Christmas.
The stock still has a little ways to go before it reaches the 134.37 target we’ve been using as an upside objective. At the rate it’s going, AAPL could be there by Wednesday. Better watch this one closely, because if the shares are topping, so is the stock market. The big question is whether the bull market can be stretched out for long enough to allow DaBoyz to cash out of other megacap stocks that they are immersed in up to their eyeballs: TSLA, AMZN, GOOG, CMG, NFLX. Hedge funds and pension funds have trillions of dollars locked up in these stocks, and they desperately need to unload them on the rubes, since they offer horrible value at these levels. Keeping the market levitated for the year or two it could take to split and reprice them for the hoi-polloi will be be quite a trick, even for the Masters of the Universe.