Thinking the Unthinkable – Does Apple Break EBV+5?

I love equity markets!

Equity markets are in constant motion.  And when you marry equity markets with model price charts you will be amazed at the stories the market is telling you about individual companies.

Well this morning started off with a bang seeing a pre market price quote of Apple Inc. below $500.  A quick look at my model price chart has EBV+5 of AAPL at $507.79.  Hmm… What is going on here?

We should see more evidence in the coming days, but I tell you what looms large over this stock is the Q1 FY13 Earnings Release on January 23, at 5 pm eastern.  Certainly going into this earnings release where AAPL is trading today – just under EBV+5 would speak volumes of future price potential for Apple (or lack thereof).

This is certainly a major caution flag for anyone who owns Apple.  As of tonight we will have 7 trading days to assess the daily trading of Apple, and where it trades relative to EBV+5 before the earnings news.

Apple Inc. with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

Apple Inc. with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

For those interested, a daily updated chart of AAPL subsequent to this post will be maintained on Facebook, here.

Remember back on October 26, 2012 I warned readers of this blog of Apple having a negative transit of EBV+6 or $704 that lower prices would be in the offing.  Here is a copy of that tweet.  Also see may blog,”Apple’s Correction no big Surprise to Readers of ModelPrice Guy”.

Tweet sent October 26, 2012

Tweet sent October 26, 2012

So how would I summarize this trading day for Apple?  Not a killer blow, however a significant chink in the armor, for sure.

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