I think a pullback of some kind should be close for AAPL:

  1. Gap up, Doji plus volume surge, so it could be an exhaustion gap.
  2. ChiOsc is way too high. See dashed red lines for what happened in the past when ChiOsc is this high.
  3. Could be Bump and Run Reversal, i.e. the recent push up is much steeper than the previous push up channel which usually is not a good sign.
  4. iPad 3 release is on March 7, take a look at what happened after iPad 2 was released on March 2, 2011.


Please remember my rule for shorting stocks, so far AAPL has no lower high and no lower low, so, yes, it might pullback but it’s not a short at least before a Trading Reversals setup is triggered.

An interesting thing about AAPL being the 6th stocks in the $500 Billion Club is all the previous 5 stocks were down a lot as soon as they stepped into the $500 Billion Club. The following statistics are from Sentimentrader.


Another interesting thing is the SPX was at or very near a 52-week high at the point each of the stocks reached $500 billion.  As we can see from the chart below, also from Sentimentrader, every time, the index was within days of peaking.