AAPL update

Then, Nov 9, 2012 and now;

AAPL nov 9 2012aapl jan 25 2013

At first we expected the stock to go to the bottom trend line of the channel. It did not get much lower than the midpoint, give or take. That brings the target for an a-b-c correction a little higher to about $400. That corresponds to about a 50% drop of the last complete up leg that starts a little under $100. The break of this channel is significant from a technical standpoint even if it is hard to immediately fathom why this stock should drop that far. The stock trades at a modest p/e of about 10, has $137 bln. in it’s war chest and reported earnings were pretty well as expected and quite respectable. Just not as outrageously good as usual? is almost the biggest again.