Apple 2.0

Covering the business that Steve Jobs built

Just for the record, Apple bounced on Monday

May 21, 2012: 6:19 PM ET

Andy Zaky has called a bottom for the fifth time in a row

FORTUNE: Bullish Cross' Andy Zaky, never shy about tooting his own horn, has asked me to remind readers that on Thursday, with Apple (AAPL) trading just over $530, he announced that the share price was at or near a bottom and was about to bounce.

"Those who have been waiting for a correction in Apple to buy the stock," he wrote," now have that opportunity to do so."

On Monday, as predicted, the stock rose $30.90 to close at $561.28. It was the second largest dollar gain in Apple's history, according to AAPLInvestors.net.

(In percentage terms that was nowhere near the record 33.22% gain the stock registered on Aug. 6, 1996, when it rose $6.56 to close at $26.31. Those were the days.)

In a weekend update, Zaky wrote that the selling pressure that brought the stock down from its record intraday high of $644 on April 9 was unlikely to have dissipated completely.

"We will likely see a second and maybe even third leg down in this correction," he wrote. "But between this first leg down and the next leg down, there will be a major rebound. A rebound that could take both Apple and the indices significantly higher."

Zaky was particularly pleased to see the stock perform as predicted Monday because his buy recommendation post had been rejected last week by the editors at Seeking Alpha.

"The technical part of your reason for the buy rating seems to go counter to a bunch of very good momentum studies that have been done in recent years," they wrote. "Please flesh it out further – the market clearly knows Apple's P/E and has decided to continue selling anyway."

"That," Zaky says, "is why financial editors shouldn't try and edit for content."

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Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

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