David wanted to know if I agreed with him about Apple looking like a short. My answer is an emphatic ‘no’. I don’t see any signs of AAPL rolling over in the chart right now. I posting a weekly chart to give a longer term view. The bears have been screaming about the valuation on Apple for about two years now but it just continues to rise. This is a great example of why shorting on valuation alone is not a good idea. I’d combine those fundamental reasons with a little trend analysis and wait for the uptrend to be broken before trying to short this bad boy.

Daredevils may want to try to short it when (if) it gets close to 100 (or 50 after the upcoming split). :-)