As AAPL was topping over $630 as rumors of the DOJ action in the e-books matter was leaking out, I seem to recall that the AAPL tech news aggregator site I follow also reported that Jim Cramer had the previous evening touted AAPL as something on the order of the greatest stock of our time, or something close to that (I didn’t see or hear his comments). Then, the day before the Facebook IPO, he penned an article titled Facebook IPO Doesn’t Mark a Top. He marked at least an intermediate-term top in AAPL.
He also loved GM in the pre-Crash years into its top in the $50s.
Only time will tell if FB marks a top. Cramer’s article is a negative to me. Here’s Barron’s on the same topic with different FB analysis, which I favor. It “should”, in that the projected price range of $28-35 was raised to $38 simultaneous with insiders increasing the amount of stock they sold. This strikes me as Wall Street at its worst.
At the same time, this IPO and related action in Internet stocks also reminds me of the Y2K era. The NAZ peaked at 5103 at the same time (March 2000) that many stocks were bottoming. A similar thing may be happening now. In other words, the Internet 2.0 bubble stocks (my view) may be peaking/have peaked, but other stocks may be bottoming. The averages may be less revealing in the weeks and months ahead than sectors.
I plan to put up more detailed trading-related thoughts at econblogreview.blogspot.com before the weekend ends.