I find it hard to try to figure out a stock that seems to be on a bullet train. AAPL is one such. However, given that my macro view is a correction in ES soon and a rise in precious metals, I decided to see if AAPL could be running out of steam.
Over here, I want to point out one important thing about AAPL chart: The recent market structure (boxed in yellow) depicted a pained movement up. If my Elliott Wave counts is correct, what we are seeing is really a 5th wave movement of a higher degree 3rd wave. I have drawn 2 Fibonacci extensions here to show the potential point that AAPL could reverse. It is about $195. Given that I expected this to be a 5th of a 3rd, I wouldn't be surprised if a throw-over happens before we enter the 4th wave. So if you are a professional options trader, the good news is that the time to sell options may be around the corner. But then if you are an investor in AAPL, I will also advice you to sell some call options (because I am expecting a 4th wave: usually a prolonged ranging action instead of a sharp decline).
If you need a more fundamental reason, let me give you this: Warren Buffett could be supporting the stock. If you have studied his style, you will know that he doesn't buy everything at one go. If AAPL goes down, he might just snap up more.
Over here, I want to point out one important thing about AAPL chart: The recent market structure (boxed in yellow) depicted a pained movement up. If my Elliott Wave counts is correct, what we are seeing is really a 5th wave movement of a higher degree 3rd wave. I have drawn 2 Fibonacci extensions here to show the potential point that AAPL could reverse. It is about $195. Given that I expected this to be a 5th of a 3rd, I wouldn't be surprised if a throw-over happens before we enter the 4th wave. So if you are a professional options trader, the good news is that the time to sell options may be around the corner. But then if you are an investor in AAPL, I will also advice you to sell some call options (because I am expecting a 4th wave: usually a prolonged ranging action instead of a sharp decline).
If you need a more fundamental reason, let me give you this: Warren Buffett could be supporting the stock. If you have studied his style, you will know that he doesn't buy everything at one go. If AAPL goes down, he might just snap up more.
