Click the play button to listen to the audio below:

Apple Inc (AAPL) is one of the companies that was discussed on 7-11-08 in the interview with Rick Waters on the Domain Show. This 3 minute audio clip describes the stock's failure to trigger a technical buy signal with the necessary institutional buying demand (the I criteria of the investment system) when it appeared to be positioned for another technical breakout.  Further, we go into the early technical signs of worrisome weakness as it did not find support at its 50-day moving average line (the red line), but sliced right through that important technical support level.  Additionally, the major averages (critical indicators to the M criteria) began a correction shortly after AAPL was featured in the June 2008 issue of CANSLIM.net News (read here). Based on weak technical action, AAPL was dropped from the Featured Stocks list on June 27, 2008 (read here). AAPL was first featured in yellow at $46.82 with an annotated graph on Wednesday, August 24, 2005 in the CANSLIM.net Mid Day Breakouts Report (read here).

A request from a valued institutional client (holding an open and profitable short position in the stock at present) prompted our team to dig up a copy of the following chart from 6/15/2004.  Take a look back in time to the days when AAPL was near the beginning of a 15-fold advance over 45 months!  In March 2004, one full year after the Iraq war began and the major averages had signaled a confirmed rally with a follow-through day, institutional investors were clearly accumulating its shares. Volume did not just barely limp over the minimum +50% above average volume threshold when it broke out, but instead, volume spiked up more than +500% as the price blasted to new multi-year highs. Investors who looked at its P/E Ratio of 70 may have easily made the mistake of assuming it was dangerously "overvalued" at the time. Quarterly sales and earnings increases were showing a drastic upturn, helped by the company's hot new iPod product.