AAPL’s megabucks sponsors had a bumpy ride last week, although you couldn’t tell it from the weekly chart. It shows the stock in a placid, self-assured ascent toward the 187.93 bull-market target flagged here last week. As the week wore on, the stock was deftly used by DaBoyz in tag-team fashion to power the broad averages higher. When AAPL was getting hit, most stocks were on the rise, and vice versa. This is a very efficient way to keep the bull-market con alive, given that Apple’s nearly $3 trillion capitalization can counterbalance money flows from a score of lesser, albeit highly visible, stocks. From a technical standpoint, we should regard a pullback to p=145.52 (stop 131.38) as an excellent ‘mechanical’ buying opportunity, although so fetching a bargain seems unlikely. There’s a lesser rally target at 172.40 that should produce a discernible pause or pullback. We won’t take it too seriously, though because the weekly-chart pattern that produced it is too obvious: A=123.13 on 6/4.
AAPL – Apple Computer (Last:161.84)