hello again everyone, this is joe hentgeswith beyond the chart, and in this stock chart analysis video we're going to take a lookat apple from a long-term perspective and then on the daily chart and see what the elliottwave picture is telling us. so stay tune. [intro clip plays]alright, so what you're looking at here is the long term weekly chart of apple and here'show i've got the wave count laid out. i believe
aapl stock trend, it's had a huge bull run from july 1982 lowto the may 2015 high. ok. and that high was $134.54, split adjusted...and the split adjustedlow was $0.196 up 686 times...so that is one heck of a move.and here's how the wave counts are laid out. one, two...cycle wave i, cycle wave ii andthis cannot be cycle wave 3 and then 4 because
4 cannot overlap 1.so we continue to count the wave count in here and it's the same thing...it goes 1,2, 1, 2 until you get a completed 5 waves. so now we have 1, 2 and we complete cyclewave iii all the way up here in 2012. ok. and so this wave structure and sometimes becauseof semi-log...this is on a semi-log basis... it keeps all of this in proportion percentage-wise.one inch on the chart percentage-wise equals one inch in the chart up here percentage-wise.it also allows you to see the waves nice and clear down here at all levels.let me give you an example. if you take this off and convert to arithmetic chart, that'sthe picture that you get. and you really don't get a chance to see the wave structure downin here. you can see how exponential the move
started to become...ah from 2008 and beyond.and the kind of big corrective moves. so when you look at this wave iv right here,just remember this. look at the move and how big it looks and let's come back in here,so sometimes those corrective moves are a little bit deceiving. that's that same waveiv, ok, so it corrected quite a bit dollar wise and percentage wise, but where do youhave to measure? you have to measure from this low to here and this actually correctedlike 68%, it was a pretty big correction, but you could clearly see that on the arithmeticchart. so anyway this is the count we've got andi believe we have ...let me zoom in a little bit...we've got 5 completed waves that wehad up in here. and this final wave move up
now and so now we're correcting...we've gotto correct...if we've got 5 impulse waves up, we're going to have 3 corrective wavesback. and at a minimum we're going to go to thebottom of wave iv i believe. ok. many, many times... it's not a rule, it's just a commonoccurrence, let's put it that way...that when you correct, you pull back into the wave 4,usually the low of wave 4. so i would say at a minimum we're lookingat a pullback into 55, so. when you look at this, you say wow, can it really pull backto 55 from 135 back to 55? yeh, i mean look at the kind of corrective action that itsdone in the past. i mean its not unusual to see the kind of correctives moves this stockhas made.
and if you want to see...you know you sawthe exponential type move. take a look at cisco...if you don't think things can correctquite a bit after you have an exponential move...ah, you need to think again about that,because they can. alright, so let's take a look again, here'swhat we're look at, i believe we've gotten an a move, a 5 wave, a move back and now we'reinto some kind of b. the reason i have the question mark here isbecause b could morph into something else. it could be a triangle. it could become someother kind of shape, but right now my best count is that this has been a b move backand we are doing 1 of c. and let me take a look at the daily chart so you can see whati'm talking about.
here's the 1, flat 2, an a,b,c flat, a strongwave 3, a zigzag 4 and then a 5th wave down for a. i think we have a b pullback here.and now we started a another wave count of c. c should be 5 waves. so that's why i'mlooking at that and counting it...and remember these things can become very complex oncethey get into corrective mode. all you have to do is look at this correctivemove from 1987, the peak in 1987 to 1997...look at this kind of corrective mess. and how complexit can become. [background music starts] so we just have to keep on trying to watch thewave count and just recognize the fact that we are in a corrective mode on apple rightnow...i think that at a minimum were looking at the 55-60 zone, so we'll continue to watchthat.
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