The Apple Dominion

$Apple(AAPL)$ , like all fruit, are born to serve two purposes.

To spread the apple species and to feed birds, worms and humans.

The life of the apple is interesting to watch. It began as a tiny seed in the fields of NASDAQ in 1980, weighing at $0.39 (or grams).

Now the apple has grown to be almost 800 grams. That is record heavy for an apple.

(There have been several stock splits that lowered the price of each apple)

The miracle of nature is, that a tiny cell can multiply thousands upon thousands of times. In this case, our apple fruit has grown almost 2000x since its birth.

We have fed off of apples for a long long time.

The consumption of apples (measured in pieces) reached its peak in 2010.

Most who needed to eat a single apple, have eaten it. Volume is significantly decreasing.

This apple fruit is now massive in size. No sane person would eat 800 grams of apple in an evening. Of course volume has significantly weakened. Now with a single apple you can feed an entire family.

To make some sense of the real need for apples, we have to consider the daily consumption of apples in grams, not in a piece-by-piece basis.

This indicators makes a very simple calculation. It multiplies volume with the logarithm of price.

If we wish to compare price to volume, we must convert them both in the same scale.

Volume is linear, while price is logarithmic. To compare apples to apples, price must be turned into a linear number.

An interesting phenomenon takes shape right in front of our eyes.

Apple consumption reached its peak in 2008. From then, the market is getting progressively more saturated in apples.

Think about it. Everyone who needed an apple, has eaten one.

There is almost nobody left who has never eaten an apple.

Up until 2008, most the majority of apples went into our mouths.

Now, the majority of apples will have to evacuate through the back door.

Consumers have eaten too much of everything, not just apples.

Similar saturation problems occur in the wider feed (equity) market.