“It’s May all over again for Apple (AAPL) investors,” Tradevestor writes for SeekingAlpha. “This article was written back in May when the ‘slingshot’ effect was in full force. And almost 6 months later, history repeats itself. So, it’s time to have a relook at things and realize how eerily similar the two situations are, though they are separated by 6 months. If things follow the same pattern as the last time, investors can expect at least the same 25% return we saw after the previous pullback.”
“By now, most Apple investors know the slingshot theory coined by Jason Schwarz,” Tradevestor writes. “The more the stock ‘gets’ pulled back, the more the joy when riding it back up. The theory is that the big funds and institutions try to get the stock as low as possible so they can get in cheaper ahead of the next run up. We believe the fall from $705 to the current price level of about $600 is a great buying opportunity, for a number of reasons.”
Read more in the full article here.
Shorting Apple: How interested parties frame stories to drive down Apple’s stock – May 23, 2012