I have another more interesting idea as to why Apple might have seen a longer term top.
Yesterday when I posted I just quickly compared Apple's chart to a few of the other tech names that have had similar parabolic moves.
What they all have in common is that they've all failed to reach the same heights again.
Even Google has failed to reach the top it set in 2007 on this move up.
Facebook might be a part of the reason for this sellout (along with Greece and everything else you can think of) but I think the main reason for why Apple has been selling so relentlessly is that they started to pay a dividend.
This might seem counterintuitive, but the dividend gives everyone a simple way of seeing what they might expect the company to pay them for holding the stock. In these market conditions the most Apple with a dividend of 2.65 is worth seems to be 644.
Google is playing it smarter and still refusing to pay dividends which, ironically, is why they are holding up better.
Everyone holding can still dream about the enormous payout they'll get when Google starts to pay. Good luck with that.
If you look at Apples chart you'll see that it gapped up with quite a bit of volume on the 14th of march when someone was informed about the upcoming dividend. The dividend was announced on the 19th and from there it went up on lower volume until the 10th of April where it topped at 644, This is where the last buy and holder thought "not worth it"
Then it sold out on quite a bit more of volume, did a massive bounce up and has been selling out on lower volume ever since.
This lower volume indicates that it's mostly retail flipping shares to each other.
This gives you two options:
1. Smart money has gotten out and is probably still waiting for retail to freak out and really start selling.
or
2. Smart money is still holding from the top and has turned into dumb money since the most retail was willing to pay was 644.
Both of these options point to more potential downside for Apple.
