The biggest rallies happen in bear markets!

Do you think AAPL’s bubble has popped? I think so and here’s why: the biggest one-day rallies in a stock normally happen in a bear market as short covering rallies draw in lots of followers who believe that the stock is back on it’s path to new highs. Well, last week we had the biggest one day gain ever, much larger than any normal day and larger than the gap up after Q1-2012 earnings! This tells me that the market has peaked at 644 and we’re on our way to a downtrend!