“First I want to dispel the myth that Apple’s stock is a reflection of a sinking company. It’s not, Apple is strong, one of the best, if not the best managed company on the planet,” Ernie Varitimos writes for AppleInvestor. “It’s just that the Apple faithful, the Loonians enraptured by the Steve Jobs philosophy ( I, among them), people permanently caught in his reality distortion field, think there’s some kind of big money conspiracy, a massive manipulation that controls price, that evil corporate mongers are intent on knocking down the best representative of what a corporate giant could be.”
“If I were to use Elliott Wave principles, then Apple stock price over the past seven years has been in a Super Cycle, where the the high price of 705, set in September of last year (2012), was the completion of Wave One, and the current downturn is Wave Two,” Varitimos writes. “According to Elliott Wave Principles, the Wave Two will be made up of three waves down, referred to as A-B-C. And the rules are that Wave A will Equal Wave C. If that is true, then the target price for the bottom is 390, at which point the Wave Three of the Super Cycle will commence. And if that’s true, then Apple is in for an incredible run to the Wave Three potential, which is measured by multiplying the Fibonacci Golden ration of 1.618 times the percentage of the advance, which works out to 1404! Whoa! And could go as high as 1600! But that will take 2 to 3 years.”
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