AAPL Apple Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation; Price Extended

Apple is placing its long-term top over the next month or two and will begin its swan song. Remember at Christmas time, people were buying AAPL stock for their children as a gift. The chart said down and that is what happened disappointing the kiddo's. The brown circle shows the mini Tweezer top with overbot conditions and neggie d for all indicators. There was no reason for Apple to come back up except the Fed's easy money shenanigans and the pump begins in late March. Traders and investors buy AAPL with reckless abandon celebrating the Federal Reserve's money printing schemes. The Fed easy-money wine flows like water. The world remains awash in liquidity.

So the top is extended with another new all-time high. Timmy Trader said he has placed 100% of his clients money in AAPL stock since it will never go down again. If you are one of those people that bot your kids Apple stock, teach them how to sell shares and scale out of a position. Have them out of AAPL stock within the next two months, otherwise, they will opine on the upcoming holidays about how the gift last year sucked.

The red lines show the rising wedge pattern in play which is bearish. The collapses from rising wedges can be quite dramatic. The RSI and stochastics are overbot agreeable to a pullback. The chart indicators are in universal negative divergence except for the MACD line that remains long and strong and wants price to come up for another high in July which is only 2 days away. A jog move will be needed down in July and back up in August for the top when price prints a matching high and the MACD line goes neggie d. The top may come sooner. The last top came with that Tweezer Top where price prints the matching high and then drops like a rock. The MACD must turn flat or down with neggie d before you can call the top but it is either July or August and it is a long-term top (months and perhaps years). Apple will eventually revert back under the 200-month MA which is down at 76 and rising.

The purple stars show that the trend higher becomes weaker with each top. The ADX drops lower and lower and now signals that the strong move higher in AAPL price over the last 1-1/2 years is NOT a strong trend higher. The Aroon green line is pegged into the ceiling with nowhere to go but down which is bearish.

Price has violated the upper band so the middle band at 232 is on the table as well as the lower band at 118. Price is extended above the moving averages requiring a mean reversion lower. 

Interesting. The AAPL weekly chart is in full neggie d right now with a shooting star candlestick. That chart is ready to drop now. The daily chart started receiving a neggie d spankdown 3 days ago. AAPL can be shorted going forward. Since July is so close, if AAPL price can hang in there a couple days at current levels, Apple will top out quickly, perhaps over the next week or two will be the long-term top. If AAPL drops right now and begins July substantively lower in price, Apple will likely want to rally back after the multi-week downturn from the weekly chart takes place. This would hint at the August top. If a long-time successful holder of AAPL, scale-out in thirds. Sell one-third now, one-third in a month and the final third the month after that.  Do not be surprised to see AAPL in the 150-240 range at the end of the year. AAPL can be shorted going forward through the end of the year.

AAPL is $1.5 trillion market cap. The S&P 500, the US stock market, is $23.0 trillion market cap. Apple makes up 6.5% of the SPX by market cap. AMZN is 6%. FB is 3%. NFLX 1%. GOOGL makes up 4% of the S&P 500 by market cap. Together, the 5 FAANG stocks represent 21% of the US stock market. Ay carumba. May the Lord Have Mercy on Everyone's Soul when the FAANG's reverse. Comically, Apple employs 2 million people. The total workforce is 131 million so humongous Apple with its record market cap that makes up nearly 7% of the US stock market, only employs 1.5% of the workers or only 3 out of every 200 workers. And what benefit is any of this Apple garbage to the huddled masses, common Americans, disadvantaged people, poor folks or disabled souls? Zero. Crony capitalism is a phony and corrupt financial system that only benefits the wealthy class.

Do not swallow the Apple hype. China will screw Cook as time passes. In India, they prefer cheaper phones. The AAPL chart is topping out over the next month or so and these highs will not be seen again for many months and more likely a few years. Keystone does not hold a position long or short in AAPL currently but will probably sniff around the next few days and see if a short entry presents itself. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.