This article is about Apple (AAPL) and Google (GOOG).
Apple stock is followed by over 50 stock analysts and a legion of commentators. All information that is publicly available has been beaten to death, and there is no shortage of speculation. It is likely that most institutions who were going to own Apple stock already own it. For Apple stock to decisively move out of its trading range, it needs a trigger.
Apple stock is now in a ‘œCrowded Trade’, the fifth and last stage of the ZYX Change Method , which attempts to identify changes in risk ahead of the crowd.
The key question facing investors is what is next? Apple has the potential to become a $1000 stock or a $100 stock ‘” it can go either way.
After the Crowded Trade stage, a high profile stock such as Apple, either becomes a short trade or makes a decisive breakout on the upside, and the cycle of the five stages of a long trade starts all over again.
New insights on Apple’s founder Steve Jobs in the new biography by Walter Isaacson are a potential trigger for a decisive break on the upside for Apple stock. Astute investors reading the biography are likely to focus on Apple’s patents on smart phones and their long-term implications on generating significant royalties for Apple.
As an excerpt from the book states:
“I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion in the bank, to right this wrong,” Jobs said. “I’m going to destroy Android, because’ …Read More at Marketwatch
