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A September posting recommended selling Apple
AAPL
short. This switch from bear to bull can be partially explained by this monthly histogram of expected return of share price from 1980. The stock has risen in September only 35% of the time but that number doubles in October, the strongest month of the year for this stock. I add that the average low in any year for the technology sector has been October 9th.
Monthly Histogram
October has been the strongest month in which to hold the stock.
Cycles Research Investments LLC
The second development is the bottom in the monthly cycle.
Apple Monthly Cycle
This accurate monthly cycle has bottomed.
Cycles Research Investments LLC
Lastly, relative strength (green line) has been strong as depicted in the daily graph below. In fact, this is the all time high in relative strength over the last 41 years! In 2022, the stock has maintained its relative superiority despite the decline in the technology sector. The shares are due to rise to $150-$160 by November.
Relative strength has been outstanding.
Cycles Research Investments LLC
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