I know most Apple enthusiasts will be rolling their eyes with my analysis and that's fine because the rest of us need people to buy our shares as we unload long positions or sell Apple short .
The Four Stages of Stocks
Markets are cyclical in nature. There is a constant process of expansion and contraction, rally and
decline that continues as the market determines the theoretical fair value of a security. The sum
of these moves forms an unquestionable cyclical pattern consistent within all time frames.
During a cycle a stock enters different phases of support, from irrational exuberance typically
found before its peak, to periods of widespread discontent where its price is continually
punished. However there are never distinctly good or bad stocks.
Every "good" stock will eventually become a bad one and vice versa. There are however good
trades; trades that reward an investor who has correctly anticipated a move and positioned
It is important to note that this works with commodities like gold and silver which are trading at
a VERY interesting point in their life cycle. Looking at various time frames in GLD and SLV
you can see this. (more)