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Will Apple close at $460+ this week?

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Apple (AAPL) will host its Worldwide Developers Conference next week on June 10 and one of the things Apple is expected to announce is its entry into the premium audio service to compete with (among others) Sirius XM (SIRI) and Google (GOOG), which announced its All Access music service a couple of weeks ago.

I'm expecting shares of Apple to close up at $460 or above as the company heads into the next week's big event. I don't believe the shorts are dumb enough to leave their bets up to chance as Apple is likely to make other announcement at the WWDC that can send the stock soaring higher.

Accordingly, the bears have gone into hibernation as the most recent short interest data as of May 15 revealed 36.5% drop in Apple's short interest. This seems like a smart move, especially given comments made by Apple's CEO Tim Cook last Tuesday while speaking while speaking with Wall Street Journal columnist Walt Mossberg and Kara Swisher of AllThingsD.

Although Cook declined to say specifically what Apple was working on, there were strong hints that rumors surrounding the company's interest in a so-called "iWatch" or a AppleTV, were true. Plus analyst Steven Milunovich of UBS suggested that recent Apple patents served as indication that the company can possibly get into the market for a eWallet, a "smartpen," or possibly video games.

Suffice it to say, over the next several months the market will be proven right or wrong in terms of Apple's ability to maintain its innovative edge. But certainly next week will be very telling with regards to the direction of the stock.

In the meantime, as shares of Apple are known to do, there will be plenty of interest this week leading to Monday the 10th and I expect Apple investors to be on the winning end of that tug.

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Stock Tickers: AAPL SIRI GOOG Author Disclosure: At the time of publication Richard held shares of Apple and held no positions in the other stocks mentioned.
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