After a strong year for Apple shares and for technology in general – the Nasdaq Composite was up +43.6% in 2020 — it’s normal to see the market consolidate on those large gains. Emerging from corrections, it is common to see another surge in the market, and there are three historical precedents that demonstrate that.
The first example is 1995. That year, the Nasdaq Composite was up +40% and the rally continued into May 1996. After correcting close to 20%, the next move higher began in September 1996, and ultimately accelerated into the great bull market of the late 1990s.
In 2003, the Nasdaq Composite gained +50% and eventually peaked in January 2004. After consolidating for seven months, the next leg up began in September 2004. According to Mike Cintolo, Chief Analyst at Cabot Growth Investor, “The upmove after that didn’t get far into new high ground, but it was an excellent stretch. That’s when Apple and Google really began their mega-runs.”
In 2009, the Nasdaq Composite rose +44% and continued into April 2010. After a four-month correction, the index resumed its advance in September 2010, and then gained over +30% into early 2011.
MacDailyNews Take: May Apple follow the historical blueprint, soon rewarding patient AAPL shareholders!