re: Apple is approaching $400....would you buy it before earnings?

Trading at half the valuation of MSFT is just absurd to me.

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Duck

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I don't think chartists and their technical analysis can compare to looking at the fundamentals, but I do believe some useful information can be gleaned by looking at the "price action".

For example, "double tops" and "double bottoms" are pretty strong indications that some very large investors believe that price level to be significant. In other words, if a stock comes down and "bounces off" of $20 in a relatively short span of time, it is likely that some large institutions (or the market as a whole) believe that to be pretty close to bottom dollar for that stock. Usually, to "confirm" this belief, one would wait until the price gets back above a particular level, typically the prior short-term high or a level derived from it.

Similarly, if a stock is heading down day to day for a couple of weeks, but the intraday trading is consistently moving low to high, that is a sort of hidden indication that some large investors are loading up for the long haul.

Looking at Apple, it did touch a double bottom at around $420 in early March and early April, so it was probably on the radar of the chartists. But after that second bounce it never approached the prior short term high of $465 or so, and the intraday trading also indicated that the downtrend wasn't over yet.

That's what I get out of the "price action" voodoo, anyway.

The 462 level is the last spot it hit at the top of a significant move...since then price started down from there it's headed straight down with no moves worth mentioning to the upside.

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I always operate under the assumption that all available information is priced in.

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Responding to the head slap. Since this is a tech oriented thread, I am sure all available info was priced into the tech sector in 1Q2000, especially including all the pre-revenue companies taken public, then all of a sudden the current info/value turned out to be "mispriced". It happens with regularity, not a believer in strong form EMH. Not that different than the REIT sector in late 2007/2008.

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Honestly apple needs to look into the HP strategy of building utter crap at low prices, I go through 2-3 ACER,HP,Dell laptops a year just bc some of the software I need for work isn't mac compatible. the pc's are just junk, the cheap ones are, can't say I've spent $1000+ on a PC in years

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Goddamn, dude, you frick up some computers

Also awesome that you buy the cheap/shitty PC for work and overspend for personal use instead of just dual booting one awesome computer

Nice thoughts so far in this thread, I always learn from the experts on this board.

I was lucky enough to buy Apple before the last split at ~$40 and thought I would hold it for 20 years. Outside of reasons based on fundamentals or analysis, I sold because naming an operations manager as CEO of such an innovative company sent the wrong signal and wouldn't work long term. He's a career supply chain guy and he's probably damn good at it, but that's the opposite end of the spectrum from the leader that AAPL needs.

I hope to buy again at some point, but not while Cook is at the helm.