Let's start with the technical argument. Below is the weekly chart; note the evening star reversal pattern.
click to enlarge
Click to enlarge
Fundamentally, we've seen the market award Apple with a higher market capitalization than Google. Basically, the market is arguing that Apple's (NASDAQ:AAPL) future profits are greater than Google's (NASDAQ:GOOG) potential profits, and hence the company is worth more. I find this to be completely inaccurate; Google is in a league of its own, and its strategy centers around free services -- something I think gives the company an enormous marketing edge, one that will only appreciate as the cost of building a technology business continues to fall. And while we have seen a broad rally in US equities since March, my bias is still bearish as I believe we are in a long-term bear trend, and so I still favor opportunities where there is bearish momentum.
Disclosure: No Position