by Rick Ackerman
An obsessive focus on AAPL has paid off for us by taking the guesswork out of the stock market’s rally. As long as Apple shares are moving higher, so will the broad averages. And as long as we have price targets we are confident in, we can trade with an aggressively bullish bias no matter how strong our skepticism. There are good reasons to be skeptical, too, not least of which is that AAPL’s price has doubled since March with no corresponding expectation of an increase in earnings. The shares have benefited in particular from the fact that every fund manager who wants to keep his job is heavily weighted in the Cupertino firm because the stock has never let them down. It is the biggest crowd-pleaser of them all, adding $40 billion in ‘wealth’ to the financial system with each $1 gain. More than any other stock, it allows city, state and county pension funds to pretend they are healthy. And so it keeps going up because, well, because it has to. How long can bulls keep it up? Until it hits 537.23, at least, according to our technical runes. That’s exactly $33.44 above Monday’s closing price, and we’ll be bullish as all get-out until it gets there. After that? We’ll let the charts speak for themselves.