This is for the people that must have trend lines, so I added a few lines that are important from my perspective. Most of the time I draw all these lines offline, but I don’t always publish them. I went back to the 2015-2016 bull market which is where most indices also corrected with the same wave count. The news that Apple and Amazon are hooking up destroyed this stock as all the mall stores will lose customers.
If Apple retraced back down to the bottom bullish trendline, then this would only get us closer to a single Primary degree bottom. Apple stock imploding from the Fibonacci $233 price level is not a surprise, as stocks also implode from the $55 Fibonacci price levels.
Every Fibonacci price drop is a 61% crash which we might get two of them. The entire Apple wave count has always displayed diagonal wave structures, this is why I have no Primary degree wave 5 peak labeled. It’s a Primary degree “C” wave.
Without a doubt, this Apple stock was in a mania blow-off in Cycle degree. Any mania does not end with an 18 or 20% correction, as most of the time markets fall back to the previous 4th wave of one lesser degree. That would get us closer to that $89 price level.
Apple was in a Cycle degree peak so, at a minimum, we have to see another Cycle degree bottom. 3 waves in Primary degree is what I will be looking for, which could also take until 2022 to play out.
Investors are going to learn what the real price value of Apple’s stock is in the next few years.
There is also a minimum of 3 gaps still open below present prices and I bet at least two of them will get filled.
The most extreme Gold/Apple ratio registered at about 5.27:1 on September 10th. It has been hitting the ratio brick wall and has now started to spread again. Still at a 6.34:1 ratio this morning, Apple stock is still extremely expensive to the price of gold. Cheap may come closer to the 21:1 range but that is only a reference. The gold ratio price brick wall would get hit first.
Some will never believe that Apple stock can even crash, but the size of this Apple bear market all depends on what degree this 2018 mania peak was!