Apple Inc. – Breaking Out of EBV+5!


So Apple is scheduled to report earnings on the 28th of October– probably Monday night – and the stock has a positive break out (transit) of EBV+5 the week before the news is officially disseminated. Coincidence I think not!

Let’s have a look at our Model Price chart as of the close Friday, October 25, 2013.

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)

This is a surprise for me!

In my last blog on Apple, I posed the question, “Will Apple Shares Have a Positive Transit of EBV+5?

My answer, “I doubt it!

I continue in the same blog, “But we will have to see. Again I talk in probabilities NOT certainty. To me this is fun. When watching my quote screen, on the handful of stocks I follow, I know the EBV [price] sic levels. The quotes mean something to me and over time they will mean something to you – if they don’t already.

Well Laurie Stamp, was on the ball and notified the community of Model Price that Apple had a positive transit last week. Thanks Laurie!

This is BIG!

For those who have reading this blog for a while know that EBV+5 is a significant EBV level and that any positive transit would have critical importance. My first response was to check when Apple’s earnings would be released. I quickly found out that Apple’s earnings would be released on Monday, the 28th, probably after the close. Wow, could this be a coincidence? Will the Apple earnings blow away ‘the street’? Will there be corporate action, such as a special dividend, that will make shareholders and the market happy? I have no idea, my guess is as good as yours.

But I don’t have to over think this move. I can just be a part of it. Yes, I took a position in Apple. That was the easiest thing to do. Go with the flow. I have seen this occur so often over the last 10 or so years it is of little surprise to me. See people always know corporate events before they are publicly disseminated and they act according to their own interests. Isn’t that insider trading, you ask? Maybe! I know I’m not trading on any inside information. Model price is telling you something is up and I’m just going with the flow.

I have stipulated many (hundreds of) times that I’m not here to recommend stocks to anybody. I’m just telling you my trading strategy on this positive transit of EBV+5.

Who knows what will happen? But as I have said before, the likely hood of Apple having a positive transit of EBV+5 was a low probability event. That low probability event occurred just before Apple’s yearend financial results are about to be released. Call me crazy but Model Price is telling everyone who will listen there will be good news coming!

As always see what happens!

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