Apple vs Dell - a technical view

Apple and Dell - AAPL/DELL - Steve Jobs marked the high water mark for his stock this week by boosting he had a larger market cap than Dell Computer. Well since Dell is getting oversold and nearing a buy point, and Apple has hit its high water mark, he should have kept his boost to himself. Ah egos!




Notice the same pattern in these two charts, Dell showed the same signs just before it topped out. Now ask yourself, these are two box makers, how is one that makes low selling Macs and a gadget that is heading into heavy competition so overpriced compared to a world class player like Dell, in the same market!

The difference, one is priced right in the current cycle and the other is driven on hype. Is it wise to own hyped stocks after these kind of runs. Lots of profit sitting at risk.

Disclosure: I am short AAPL .

West