Obviously price discovery is still taking place. IMO, very healthy for the overall market. With that said, today's rise is a bit aggressive. I think a trading pattern is emerging with rises, and blow out tops.
At 545, AAPL's trailing PE stands at 15.52. AAPL is approaching the upper range of its 2011 PE range. I believe this is where 'price discovery' will take Apple. (With Apple having a higher multiple, this is one data point to give validation for the market to have a higher multiple. Along with the strong GDP number today. We just need to see those treasuries rise a bit!)
After this blow out top, Apples new trading range could be the current top (somewhere near current levels) to the 520s.
The reason we will see a blow out top is because everyone (and I mean everyone) is positive on the stock. Over the past two weeks there has been no negative chatter on the name. None. The only hint of negativity was from a trading perspective via the Feb 13 blow out top, and that was quickly removed.
If you own it, hold it. If you are looking to get in, wait for the blow out top. (That is what I am currently doing.)
In the mean time, if anyone wants to play an Apple derivative that no one really is talking about, look at FIO. Today Mercedes is going to incorporate Siri into its cars. This is the first step toward expanding the use of Siri outside of the core iOS products. This will require greater data processing capabilities from AAPL, which means more use of Fusion-io products.
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